Marketing involves identifying customer needs and wants, developing products and services to meet them, and promoting and distributing those offerings. It is a process of creating value for customers to build profitable relationships. Effective marketing requires understanding factors like customer behavior, competitors, and the broader business environment. The goal is to choose target markets and grow customer base through superior customer value and satisfaction.

1. Marketing
The Domain of Marketing

2. What is Marketing?
• Marketing is the social process by which
individuals and groups obtain what they need
and want through creating and exchanging
products and value with others. Kotler
• The right product, in the right place, at the
right time, at the right price .

3. What is Marketing?
American Marketing Association :
Marketing is an organizational function & a set
of processes for creating ,communicating &
delivering value to customers and managing
customer relationships in ways that benefit the
organization & its stakeholders.

4. What is Marketing ? ….
It is a process by which
-one identifies the needs and wants of the people.
-one determines and creates a product/service to meet the needs
and wants. [PRODUCT]
-one determines a way of taking the product/service to the market
place. [PLACE]
-one determines the way of communicating the product to the
market place. [PROMOTIONS]
-one determines the value for the product.[PRICE].
-one determines the people, who have needs/ wants. [PEOPLE]
and then creating a transaction for exchanging the product for
a value.
and thus creating a satisfaction to the buyer's needs/wants.

5. The 4 Ps of Marketing

6. For an exchange to occur…..
• There are at least two parties.
• Each party has something that might be of value
to the other party.
• Each party is capable of communication and
delivery.
• Each party is free to reject the exchange offer.
• Each party believes it is appropriate or desirable
to deal with the other party.
1-6

7. What is Marketing Management?
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.
1-7

8. What gets Marketed ? Or the scope of
marketing
• Goods- Physical goods like , cars , trucks , TV,
watches etc
• Services – Air line , hotels , car rentals etc
• Events – Olympics, world cup ect
• Experiences – water parks , amusements etc
• Celebrity marketing
• Places – cities , regions , countries etc – tourism ,
factories , residences , head quarters etc

9. What gets Marketed ?
• Properties – real estate & investments like
stocks , marketed by estate agents &
banks(investment companies ) respectively
• Organizations – purposes of Corporate
building

10. Demand States
1-10
• Negative
• Nonexistent
• Latent
• Declining
• Irregular
• Unwholesome
• Full
• Overfull

11. What’s a ‘Market’
• A set up where two or more parties engage in
exchange of goods, services and information is
called a market. Ideally a market is a place where
two or more parties are involved in buying and
selling.
• The two parties involved in a transaction are
called seller and buyer.
• The seller sells goods and services to the buyer in
exchange of money. There has to be more than
one buyer and seller for the market to be
competitive.

12. What’s a ‘Market’
• Physical Markets - Physical market is a set up where buyers can physically
meet the sellers and purchase the desired merchandise from them in
exchange of money. Shopping malls, department stores, retail stores are
examples of physical markets.
• Non Physical Markets/Virtual markets - In such markets, buyers purchase
goods and services through internet. In such a market the buyers and
sellers do not meet or interact physically, instead the transaction is done
through internet. Examples - Rediff shopping, eBay etc.
• Auction Market - In an auction market the seller sells his goods to one
who is the highest bidder.
• Market for Intermediate Goods - Such markets sell raw materials (goods)
required for the final production of other goods. Commodity Market.
• Financial Market - Market dealing with the exchange of liquid assets
(money) is called a financial market. Stock market , bond market , foreign
exchange market etc.

13. Key Markets- the decisions marketers
make
• Consumer Markets – establish brand image
• Business Markets – establish corporate image
& identity
• Global Markets – how to enter , how to adapt
products & services , how to adapt
communication
• Non- profit & governmental markets –
universities , churches , Ngos etc

14. concept of Meta-markets
• Two or more distinct markets that are associated in some
way to a product or service.
• For example, the meta-market
for house cleaning products includes homeowners
and domestic cleaning service companies.
Meta market is a place, where everything connected with a
certain market can be found. Let’s say a car selling meta
market would be a website, that sells cars but you will also
find car parts there, add-ons for cars, colors for cars,
mechanics reviews and many more.

15. concept of Meta-markets
• Meta Market can be a web-based market centered
around an event or an industry, rather than a single
product. These are markets of complementary
products that are closely related in the minds of
consumers, but spread across different industries.
• The web allows us to match producers' desire for
economies of scale, and consumers' desire for variety
of choice to satisfy a set of needs.
• Thus we can have a meta market for a wedding (event)
that includes honeymoon recommendations, sources
for engagement rings and wedding gowns.

16. New Marketing Realities – The Major
Societal Forces- The marketplace isn’t
what it used to be….

17. New Marketing Realities – The Major Societal Forces-
The marketplace isn’t what it used to be….
1-17
• Changing technology
• Globalization
• Deregulation
• Privatization
• Outsoursing
• Customer Resistance
• Retail transformation
• Heightened Competition
– resulting in high
production costs &
shrinking profit margins
• Empowerment
• Customization
• Convergence- Industrial
boundaries are blurring at
an incredibly rapid rate as
companies recognize that
opportunities lie at the
intersection of two or
more industries.
• Disintermediation- classic
egs.- Amazon, E-bay , Aol
etc .

18. Explanation of Convergence ( previous
slide )
• Convergence- Industrial boundaries are blurring
at an incredibly rapid rate as companies recognize
that opportunities lie at the intersection of two or
more industries.
The computing & the electronic industries are
converging as the giants of the computer world
such as Dell , Gateway , HP released a stream of
entertainment devices – from MP3 players to
Plasma TVs and camcorders.
The shift to digital technology is fuelling this
massive convergence .

19. Explanation of Retail transformation (
previous slide )
• The power of the Giant Retailers and the so called
“Category Killers”.
• The store retailers face competition from
catalogue houses , direct mail firms , newspapers
, magazines , D.T.H operators , home shopping
and so on.
• In response , entrepreneurial retailers are
building entertainment in their stores with coffee
bars , demonstrations etc. with the objective of
‘marketing an experience rather than a product
assortment ‘

20. Company Orientations
• Production
• Product
• Selling
• Marketing
• Societal ( elaborated in the next slide)
• Relational
1-20

21. Company Orientations
• Societal orientation :
Are companies that successfully satisfy
consumer wants necessarily acting in the best,
long-run interests of consumers and society?
The marketing concept sidesteps the potential
conflicts among consumer wants, consumer
interests, and long-run societal welfare.

22. Marketing Mix and the Customer
1-22
Four Ps
• Product
• Price
• Place
• Promotion
Four Cs
• Customer solution
• Customer cost
• Convenience
• Communication

24. Core Concepts
• Needs, wants, and
demands
• Target markets,
positioning,
segmentation
• Offerings and brands
• Value and satisfaction
1-24
• Supply chain
• Competition- brand
competition , industry
, form & generic
competition
• Marketing
environment
• Marketing planning-marketing
program ,

25. Core Concepts
• Marketing-mix
• Relationship Marketing
• Relationship networks
• Marketing network
• Marketing Channels

26. Internal marketing
Holistic
Marketing-concept
Integrated
marketing
Relationship marketing
Performance
marketing

27. Marketing Management Tasks
• Developing marketing
strategies
• Capturing marketing
insights
• Connecting with
customers
• Building strong brands
1-27
• Shaping market
offerings
• Delivering value
• Communicating
value
• Creating long-term
growth

28. 1-28
I want it, I need it…..
5 Types of Needs
• Stated needs
• Real needs
• Unstated needs
• Delight needs
• Secret needs

29. MARKETING MANAGEMENT
The Marketing Management Process consists of
analyzing market opportunities, researching and
selecting target markets, developing marketing
strategies, planning marketing tactics, and
implementing and controlling the marketing
effort

30. Market Potential & Market share
Market Potential: the economic opportunity available to you
in any geographic market
Market Share: Market share is the percentage of a market
(defined in terms of either units or revenue) accounted for by
a specific entity.
Marketers need to be able to translate sales targets into
market share because this will demonstrate whether forecasts
are to be attained by growing with the market or by capturing
share from competitors. The latter will almost always be more
difficult to achieve. Market share is closely monitored for signs
of change in the competitive landscape, and it frequently
drives strategic or tactical action.

31. BUSINESS ENVIRONMENT

32. BUSINESS ENVIRONMENT
Business Environment : consists of
all those factors that have a bearing on
the business. Business decisions are
therefore based on environmental
factors.

33. BUSINESS ENVIRONMENT
An organization must have a strategy to achieve
its missions/objectives/goals.
A strategy is also defined as establishing a firm-environment-
fit

34. Levels Of Environment
A. INTERNAL ENVIRONMENT
A. EXTERNAL ENVIRONMENT

35. INTERNAL ENVIRONMENT
It’s the internal factors that affect business.
The internal factors are generally regarded as
Controllable Factors because the company has
control over these factors. It can alter or modify
such factors.
Example: facilities , personnel , organizational and
functional means such as marketing-mix etc.

36. INTERNAL ENVIRONMENT- internal
factors
• VALUE SYSTEMS : The value systems of the
people in the top has an important bearing on
missions, objectives , policies etc . Eg. Mr. J.R.D.
Tata .. Social responsibility towards consumers ,
employees , stakeholders.
• MISSION & OBJECTIVES : The business domain ,
priorities , direction of development , philosophy
are guided by the mission & objectives. Eg. Tata's
decided to go transnational

37. …INTERNAL ENVIRONMENT- internal
factors
• MANAGEMENT STRUCTURE & NATURE : Eg the
composition of the board, extent of professionalization
of management
• INTERNAL POWER RELATIONSHIP: the support the top
management enjoys from shareholders , employees
etc.
• HUMAN RESOURCES: the characteristics of recourses
like skills , quality etc
• COMPANY IMAGE & BRAND EQUITY: the image of the
company matters while raising finance , forming joint
ventures, launching new products etc

38. …INTERNAL ENVIRONMENT- internal
factors
• OTHER FACTORS :
1. Physical assets
2. R&D & technological capacities
3. Marking Resources : Quality of the marketing
team , distribution which has a direct impact on
marketing etc
4. Financial Factors : financial policies , capital
structure etc

39. External Environment
MICRO
ENVIRONMENT
MACRO
ENVIRONMENT
EXTERNAL
ENVIRONMENT

40. MICRO ENVIRONMENT
The micro environment consists of the actors in
the company’s immediate environment.
These are more closely linked to the company.
They are :
• Suppliers : The importance of a reliable &
smooth supply of raw- materials is essential.
Importance is therefore given to vendor
development . Change in Supplier’s attitude
will have an impact on business

41. …MICRO ENVIRONMENT
• Customers : the task of business is to create & sustain
customers. A business exits because of customers.
Customers( including Indian customers) are going global in
their shopping.
• Competitors: not just the other firms who make similar
products but also those who compete for discretionary
income.(pocket share)
• Marketing Intermediaries : the firms that aid the company
in selling, promoting ad distributing to final consumers
• Publics: A public is any group that has an actual or
potential interest in or impact on an organizations ability to
achieve its goals. They can have a positive &/or a negative
impact. Eg. Media publics ,local publics , citizens forum etc.

42. MACRO ENVIRONMENT
They are the larger forces that shape
opportunities and/or pose threats to the
company .
They are more uncontrollable than the micro
forces. The success depends on the company’s
adaptability to the environment .
Eg. If the cost of imports increase due to an
increase in import duty , the solution could be
domestic production

43. ….MACRO ENVIRONMENT
Foreign
Environment
Domestic
Environment
Global
Environment

44. Macro Factors – PEST
Political
Macro
Environment
Economic
Technological
Sociocultural

45. Political Factors.
The political arena has a huge influence upon the regulation
of businesses, and the spending power of consumers and
other businesses. You must consider issues such as:
• 1.How stable is the political environment?
• 2.Will government policy influence laws that regulate or tax
your business?
• 3.What is the government's position on marketing ethics?
• 4. What is the government's policy on the economy?
• 5. Does the government have a view on culture and
religion?
• 6. Is the government involved in trading agreements such
as EU, NAFTA, ASEAN, or others?

46. Economic Factors.
Marketers need to consider the state of a
trading economy in the short and long-terms.
This is especially true when planning for
international marketing. You need to look at:
• 1. Interest rates.
• 2. The level of inflation Employment level per
capita.
• 3. Long-term prospects for the economy Gross
Domestic Product (GDP) per capita, and so on

47. Sociocultural Factors.
The social and cultural influences on business vary from country to
country. It is very important that such factors are considered.
Factors include:
• 1.What is the dominant religion?
• 2.What are attitudes to foreign products and services?
• 3.Does language impact upon the diffusion of products onto
markets?
• 4.How much time do consumers have for leisure?
• 5.What are the roles of men and women within society?
• 6.How long are the population living? Are the older generations
wealthy?
• 7.Do the population have a strong/weak opinion on green issues?

48. Technological Factors.
Technology is vital for competitive advantage, and is a major
driver of globalization. Consider the following points:
• 1. Does technology allow for products and services to be
made more cheaply and to a better standard of quality?
• 2.Do the technologies offer consumers and businesses
more innovative products and services such as Internet
banking, new generation mobile telephones, etc?
• 3.How is distribution changed by new technologies e.g.
books via the Internet, flight tickets, auctions, etc?
• 4.Does technology offer companies a new way to
communicate with consumers e.g. banners, Customer
Relationship Management (CRM), etc?

49. Consumer Behavior

50. What Influences Consumer Behavior?
Consumer Characteristics are shaped by -
• Cultural factors
• Social factors
• Personal factors
6-50

51. Culture
The fundamental determinant of
a person’s wants and behaviors
acquired through socialization
processes with family
and other key institutions.
6-51

52. Subcultures
6-52
• Nationalities
• Religions
• Racial groups
• Geographic regions

53. Social Factors
6-53
Reference
groups
Social
roles
Family
Statuses

54. Reference Groups
All those groups that have a direct or indirect influence
• Membership- have a direct impact ( sanstha, religious
6-54
club etc
• Primary- strong interactions like family , friends ,
neighbor .
• Secondary- professional , trade unions or religious etc
• Aspirational- those that people hope to join
• Dissociative- all those that individuals reject

55. Family
6-55
• Family of Orientation
– Religion
– Politics
– Economics
• Family of Procreation
– Everyday buying behavior

56. Personal Factors
6-56
• Age
• Life cycle stage
• Occupation
• Wealth
• Personality
• Values
• Lifestyle
• Self-concept

57. Brand Personality
It is believed that people choose those brands ,
whose personality & closest to their own .
• Sincerity- down to earth , honest , wholesome &
cheerful
• Excitement- daring , spirited , imaginative & up-to-
6-57
date
• Competence- reliable , intelligent & successful
• Sophistication-upper class, charming
• Ruggedness - tough & outdoorsy

58. Consumer Psychology
• Motivation- the driving force
• Perception- consumers impression
• Learning- the study on the brand
• Memory- retention
6-58

59. Model of Consumer behavior – the Key
psychological process

60. Motivation- pg.155
• Maslow’s hierarchy of needs
• Herzberg’s two-factor theory
6-60

61. Maslow’s Motivational Pyramid- Need
Hierarchy theory

62. Perception
• Perception is the process by which we select,
organize ,and interpret information inputs to
create a meaningful picture

63. Perception
• Selective attention- due to bombardment of
communication
• Selective retention- retain information that supports
our attitudes & beliefs- things that we like & of that
brads that appeal to us etc
• Selective distortion- interpretation that fits pre-conceptions.
Consumers distort information to be
consistent with prior brand beliefs & expectations.
Blind taste tests…
• Subliminal perception - covert , embedded messages
in ads & packages that has a sub conscious effect.
Although this is not a proven fact .
6-63

64. Perception
Some Facts on Selective attention :
 People are likely to notice stimuli that relate
to a current need
 People are likely to notice stimuli they
anticipate
 People are more likely to notice stimuli whose
deviation are large as compared to normal size
of stimuli

65. 5-stage ‘Buying decision process’
Problem Recognition
Information search
Evaluation of alternatives
Purchase decision
Post purchase behavior

66. Sources of Information
• Personal- friends ,family ,neighbors etc.
• Commercial- ads , websites , dealers ,
packaging , displays etc
• Public- consumer ratings organizations etc
• Experiential –handling examining & using the
product
6-66

67. Evaluation of Alternatives
The attributes of interest to buyers vary from
product to product :
• Hotels – location , cleanliness , price ,
atmosphere
• Mouth wash – color , freshness ,taste, germ-killing
etc
• Tires – Safety , life, ride quality etc .

68. Evaluation of Alternatives
Consumer brand beliefs
computer Attributes
Memory capacity graphics Price
A 8 9 9
B 7 7 7
c 10 4 2

69. Purchase Decision
Non-compensatory Models of Choice
Purchase decisions:
• Conjunctive heuristics( thumb rule)- consumer sets a minimum cut
off level for each attribute & chooses the first alternative that
meets the minimum standard of attributes .
• Lexicographic- consume chooses the best brand on its perceived
6-69
most imp. attribute
• Elimination-by-aspects –Minimum acceptable cut-off are a must.
Beyond this the consumer chooses between brands on the
probability of it fulfilling importance as he perceives it

70. Perceived Risk( purchase decision)
6-70
• Functional- not perform
as per expectations
• Physical- affect the
physical well – being
• Financial- not worth the
price
• Social- results in an
embarrassment
• Psychological-affects
the mental well-being
• Time- failure of the
product may result in
an opportunity cost of
finding another product

71. Other Theories of
Consumer Decision Making
6-71
Involvement
• Elaboration
Likelihood Model
• Low-involvement
marketing strategies
• Variety-seeking
buying behavior
Decision Heuristics
• Availability
• Representativeness
• Anchoring and
adjustment

72. Analyzing Business Markets

73. Organizational Buying
Decision-making process by which
formal organizations establish the
need for purchased products and
services, and identify
evaluate, and choose among
alternative brands and suppliers.
7-73

74. Characteristics of Business Markets
7-74
• Fewer, larger buyers
• Close supplier-customer
relationships
• Professional purchasing
• Many buying influences
• Multiple sales calls
• Derived demand-demand
for industrial product is
derived out of demand
for the final consumer
product eg. cars
• Inelastic demand-relatively
inelastic
• Fluctuating demand
• Geographically
concentrated buyers
• Direct purchasing

75. The Buy- Grid Model of B2B sales - Buying
Situation
7-75
• Straight rebuy
• Modified rebuy
• New task

76. The Buying Center
• Initiators- users or others in the org. who request that
something is purchased
• Users- usually they are the initiators
• Influencers- people who influence buying decisions-define
specifications or info. Regards alternatives eg.
7-76
Technical persons
• Deciders- people who decide on requirements or
suppliers
• Approvers-people who authorize the action of buyers
• Buyers- major role of selecting vendors & negotiating
• Gatekeepers- eg. Purchasing agents , telephone
operators , receptionists who prevent vendors from
reaching the buyers

77. Of Concern to Business Marketers
• Who are the major decision participants?
• What decisions do they influence?
• What is their level of influence?
• What evaluation criteria do they use?
7-77

78. Handling Price-Oriented Customers
• Limit quantity purchased
• Allow no refunds
• Make no adjustments
• Provide no services
7-78

79. Forms of Electronic Marketplaces
• Catalog sites
• Vertical markets- specific websites called e-hubs- eg.
For plastics – plastics.com
• Pure play auction sites- like ebay, freemarkets.com for
industrial parts, raw materials etc
• Spot markets- on spot electronic markets where prices
change by the minute- eg.chemconnect.com for
7-79
chemicals
• Private exchanges-specially invited groups of suppliers.
IBM, Walmart practice this
• Barter markets
• Buying alliances-sometimes companies buting the
same goods form a buying consotia

80. Order Routine Specification and Inventory
• Stockless purchase plans- JIT
• Vendor-managed inventory
• Continuous replenishment
7-80

81. Desirable Outcomes of a B2B transaction:
OTIFNE
7-81
• On time
• In full
• No error

82. Establishing Corporate Credibility
7-82
• Expertise
• Trustworthiness
• Likeability

83. Factors Affecting
Buyer-Supplier Relationships
• Availability of alternatives
• Importance of supply
• Complexity of supply
• Supply market dynamism
7-83

84. Categories of Buyer-Seller
Relationships
7-84
• Basic buying and selling-routine
exchanges –little
information sharing
• Bare bones-more
adaptation by the seller –
less info sharing by buyer
• Contractual transaction-formal
contracts with low
trust & cooperation
• Customer supply-competition
governs
• Cooperative systems-here
partners are united &
neither demonstrates
structural commitments
through legal means
• Collaborative-must trust
and commitment
• Mutually adaptive-parties
make relationship-specific
adaptations , but without
much trust
• Customer is king- seller
adapts

85. Opportunism
Some form of cheating or
undersupply relative to an
implicit or explicit contract.
7-85

86. Segmentation & Targeting
Markets

87. Effective Targeting Requires…
• Identify and profile distinct groups of buyers
who differ in their needs and preferences.
• Select one or more market segments to enter.
• Establish and communicate the distinctive
benefits of the market offering.
8-87

88. Four Levels of Micromarketing
8-88
• Segments
• Niches
• Local areas
• Individuals

89. Segment Marketing
Targeting a group of customers
who share a similar set of
needs and wants.
It has benefits over mass-marketing as your
Products can be better designed , priced etc
& above all marketing efforts can be fine –tuned
8-89

90. Flexible Marketing Offerings
8-90
• Naked solution
– Product and service
elements that all
segment members
value
• Discretionary options
– Some segment
members value
– Options may carry
additional charges
– Eg airlines , cars etc

91. Niches
• It is a more narrowly define customer groups
seeking a distinctive mix of benefits.
• When segments are further divided into sub-segments
niches are formed
• Eg- Ezee a liquid detergent from Godrej only
for woolen clothes
Aastha channel, Crack cream etc
NOTE : niches though small should have growth
& profit potential .

92. Local marketing
• Marketing programs tailored for specific
needs & wants of local customer groups.
eg NRI branches in Kerala by SBI
Spiderman 3 was released in India in 5 different
languages

93. Customization/ Individuals
Combines operationally driven
mass customization with customized
marketing in a way that empowers
consumers to design the
product and service offering
of their choice.
Here the segment size is 1
Eg: dell , Asian paints, J&N
8-93

94. Segmenting Consumer Markets
8-94
• Geographic
• Demographic
• Psychographic
• Behavioral

95. Demographic Segmentation
• Age and Life Cycle-pears soap, cartoon network etc
• Life Stage- kitchen equipment , cupboards, furniture
• Gender- TV programs of Ekta Kapoor meant for women
• Income- Nirma power for the low income group . Samll
sachets etc
• Generation-
• Social Class- SEC ( socio-economic class)2 individuals
with the same income may have different tastes
8-95

96. Psychographic segmentation
It is the science of Psychology & demographics to better
understand consumers.
Here buyer segments are divided into different groups on
the basis of personality traits, lifestyles , values & belief
systems .
People withinthe same demographic group can exhibit
very different psychographic profiles. Religion also has a
significant influence on values & lifestyles.
Eg MacD had to adjust its menu to suite Indians’
preferences by introducing veg burgers. Sonata for value-for-
money seekers , maggie for people on the move (
could be of any demo. Segment)

97. Psychographic segmentation
Some other egs. Of psychographic groups :
Fore runners , Achievers , followers , survivors
Thinkers
Intellectuals
Extroverts
Introverts
Innovators etc

98. Behavioral Segmentation
8-98
Decision Roles
• Initiator
• Influencer
• Decider
• Buyer
• User
Behavioral Variables
• Occasions- cards on birthdays ,
weddings etc
• Benefits-multiple benefit seeks
from the same product eg.
Shampoo for texture & dandruff
• User Status-potential users, first
time users , non users
• Usage Rate- light , medium &
heavy users
• Buyer-Readiness
• Loyalty Status
• Attitude – enthusiastic, positive ,
indiffrent , hostile

99. Segmenting for Business Markets- Table 8.3,
page209
• Demographic
• Operating Variable
• Purchasing Approaches
• Situational Factors
• Personal Characteristics
8-99

100. Models of Sequential Segmentation
8-100
• Stage of decision
• First-time prospects
• Novices
• Sophisticates
• Orientation
• Price-oriented
• Solution-oriented
• Strategic-value

101. Steps in Segmentation Process pg. 220,
table 8.3
• Needs-based segmentation
• Segment identification
• Segment attractiveness
• Segment profitability
• Segment positioning
• Segment acid test
• Marketing mix strategy
8-101

102. Effective Segmentation Criteria
8-102
• Measurable
• Substantial
• Accessible
• Differentiable
• Actionable

103. Back to P’s of Marketing
• We are aware of the 4 ps – product , price ,place &
promotion .
The Traditional Marketing Mix or The 4 P's of Marketing
• The marketing mix was designed as a simple way to focus
attention on the main elements of marketing for a business
and to create a marketing strategy either at business,
product or campaign level.
One thought is that it is too product focused and doesn't
translate well into the growing service based economy we live
in
As service has become an almost invincible part of any offer
the 4 ps are now extended to 7 ps

104. 7 Ps
• There are special characteristics of a service which make is marketing
different from selling products. Perhaps most of all, you can pick up a
product and see, feel and touch it. You can't do that with services because
they are intangible.
• The 7 P's of Marketing pick up the traditional marketing mix of Product,
Price, Promotion and Place and added:
• People - services are performed by people whose performance influences
the quality of the service delivered and perceived to be delivered.
• Process - it's not just the attitudes of the person that matters but the
process they use to provide the service.
• Physical evidence - services are intangible so the customer looks for
physical clues about the quality.

105. 7 Ps

106. 7 ps

107. GATHERING INFORMATION &
SCANNING THE EVIRONMENT

108. 7 Ps

109. MIS Probes for Information
• What decisions do you regularly make?
• What information do you need to make these decisions?
• What information do you regularly get?
• What special studies do you periodically request?
• What information would you want that you are not
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getting now?
• What are the four most helpful improvements that could
be made in the present marketing information system?

110. Internal Records
• Order-to-Payment Cycle
• Sales Information System
• Databases, Warehousing, Data mining
• Marketing Intelligence System
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111. Steps to Improve Marketing Intelligence
• Train and motivate sales force
• Motivate channel members to share intelligence
• Network externally
• Utilize customer advisory panel
• Utilize government data resources
• Purchase information
• Collect customer feedback online
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112. Needs and Trends
Fad
Trend
Megatrend
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113. 10 Megatrends Shaping the
Consumer Landscape
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• Aging boomers
• Delayed retirement
• Changing nature of
work
• Greater educational
attainment
• Labor shortages
• Increased immigration
• Rising Hispanic
influence
• Shifting birth trends
• Widening geographic
differences
• Changing age structure

114. Environmental Forces
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• Demographic
• Economic
• Socio-Cultural
• Natural
• Technological
• Political-Legal

115. Population and Demographics
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• Size
• Growth rate
• Age distribution
• Ethnic mix
• Educational levels
• Household
patterns
• Regional
characteristics
• Movement

116. Economic Environment
$ Purchasing Power
$ Income Distribution
$ Savings Rate
$ Debt
$ Credit Availability
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117. Types of Industrial Structures
• Industrial economies
• Industrializing economies
• Raw-material exporting economies
• Subsistence economies
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118. Social-Cultural Environment
• Views of themselves
• Views of others
• Views of organizations
• Views of society
• Views of nature
• Views of the universe
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119. Natural Environment
• Shortage of raw materials
• Increased energy costs
• Anti-pollution pressures
• Governmental protections
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120. Technological Environment
• Pace of change
• Opportunities for innovation
• Varying R&D budgets
• Increased regulation of change
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121. Marketing
Marketing Strategies

122. What’s a ‘STRATEGY’?
• It is a plan you adopt in order to get
something done, especially in politics ,
economics or business
• It is the art of planning the best way to
achieve something or to be successful in a
particular field

123. What’s a ‘STRATEGY’?
• Strategy is a route to a destination; an
objective is the destination. Selecting a route
represents a decision. Driving along it is the
implementation of that decision.

124. Improving Value Delivery the
Japanese Way
• Zero customer feedback time
• Zero product improvement time
• Zero purchasing time
• Zero setup time
• Zero defects
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125. Corporate /divisional Strategic
Planning
Implement
Carry out;
the plan

126. The Process for Marketing Plan
• Market analysis,
• Planning,
• implementation
• and control

127. 3 V’s Approach to Marketing- value
disciplines
• Define the value segment- customers & their
needs
• Define the value proposition- fulfillment of a
combination of needs
• Define the value network- the manner in
which the promise is delivered
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128. Core Business Processes
Realization- new products
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Market
Sensing-market intelligence
Customer
relationship
Management
Fulfillment
Management
Delivery & collections
New offering
Customer
Acquisition-define target market & prospect

129. Characteristics of Core Competencies
• A source of competitive advantage
• Applications in a wide variety of markets
• Difficult to imitate
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130. Levels of a Marketing Plan
2-130
• Strategic
– Target marketing
decisions
– Value proposition
– Analysis of marketing
opportunities
• Tactical
– Product features
– Promotion
– Merchandising
– Pricing
– Sales channels
– Service

131. Corporate Headquarters’ Planning Activities
Define the corporate mission
Establish SBUs
Assign resources to each SBU
Assess growth opportunities
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132. Good Mission Statements
• Focus on limited number of goals
• Stress major policies and values
• Define major competitive spheres
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133. Major Competitive Spheres
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• Industry
• Products
• Competence
• Market segment
• Vertical channels
• Geographical

134. Product & Market expansion Grid

135. Characteristics of SBUs
• It is a single business or collection of related
businesses
• It has its own set of competitors
• It has a leader responsible for:
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– Strategic planning
– Profitability
– Efficiency

136. Organizations
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• Culture
• Policies
• Structure

137. Market Opportunity Analysis (MOA)
• Can the benefits involved in the opportunity
be articulated convincingly to a defined target
market?
• Can the target market be located and reached
with cost-effective media and trade channels?
• Does the company possess or have access to
the critical capabilities and resources needed
to deliver the customer benefits?
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138. Market Opportunity Analysis (MOA)_2
• Can the company deliver the benefits better
than any actual or potential competitors?
• Will the financial rate of return meet or
exceed the company’s required threshold for
investment?
SWOT & PEST …. A must
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139. Porter’s Generic Strategies
Michael Porter proposed 3 generic strategies that
provide a good starting point for strategic thinking
• Overall cost leadership- work hard to reducing
production & distribution cost
• Differentiation- superior in some area of
customer benefit – like best components etc
• Focus- focus on one or more narrow market
segment and focus energies on them
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140. Categories of Marketing Alliances
• Product or Service Alliances-Produce or market
complimentary products – HUL & Pepsi for launch
of Lipton Iced tea in glass bottles
• Promotional Alliances- joint promotional
activities – Bombay Dyeing used for marketing
Ariel
• Logistics Alliances- Transport Corporation of India
& Mitsui Japan – provide logistics for Toyota ,
Bangalore
• Pricing collaborations- eg, air line , hotels , car
rentals can join hands for attractive rates
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141. Marketing Plan Contents
 Executive summary
 Table of contents
 Situation analysis
 Marketing strategy
 Financial projections
 Implementation controls
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142. Evaluating a Marketing Plan
 Is the plan simple?
 Is the plan specific?
 Is the plan realistic?
 Is the plan complete?
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143. Strategic plans & Marketing Plans
• Strategic plans stem out of the Mission of the
company
• Marketing plans help strategic plans to actualize
• Marketing Today is no more just a function , but a
way of doing business
• There is much overlap between overall company
strategy and marketing strategy.
• Marketing looks at consumer needs and the
company's ability to satisfy them ; these factors
guide the company mission and objectives.

144. Strategic plans & Marketing Plans
• Company strategic planning deals with
marketing variables - market share, market
development, growth - and it is sometimes
hard to separate strategic planning from
marketing planning.
• Some companies refer to their strategic
planning as 'strategic marketing planning'.

145. Strategic plans & Marketing Plans
• Marketing plays a key role in the company's
strategic planning in several ways.
First, marketing provides a guiding philosophy -
company strategy should revolve around serving
the needs of important consumer groups.
Second, marketing provides inputs to strategic
planners by helping to identify attractive market
opportunities and by assessing the firm's potential
to take advantage of them.
Finally, within individual business units, marketing
designs strategies for reaching the unit's objectives.

147. Marketing Planning Process
Target consumers are at the centre of the marketing
strategy. The company identifies the total market,
divides it into smaller segments, selects the most
promising segments and focuses on serving them. It
designs a marketing mix using mechanisms under
its control: product, price, place and promotion.
The company engages in marketing analysis,
planning, implementation and control to find the
best marketing mix and to take action. The
company uses these activities to enable it to watch
and adapt to the marketing environment

149. Types of Organizations
• Functional Management organizations
• Product Management organizations
• Market/ Customer based organizations
• Geographic Organizations
• Matrix organizations

150. Customer/ Market based Organization

151. Functional structure
Head office
Marketing Finance
Plant 1
Fin/ Mkt/ Per
Plant 2
Fin/ Mkt/ Per
Plant 3
Fin/ Mkt/ Per
Personal

152. Matrix structure

153. Marketing evaluation & control
• No marketing process, even the most carefully
developed, is guaranteed to result in
maximum benefit for a company. In addition,
because every market is changing constantly, a
strategy that is effective today may not be
effective in the future. It is important to
evaluate a marketing program periodically to
be sure that it is achieving its objectives

154. Marketing Audits
• The Encyclopedia Britannica (2005 edition) describes the marketing audit
thus:
• "... (I)t covers all aspects of the marketing climate (unlike a functional
audit, which analyzes one marketing activity), looking at both macro-environment
factors (demographic, economic, ecological, technological,
political, and cultural) and micro- or task-environment factors (markets,
customers, competitors, distributors, dealers, suppliers, facilitators, and
publics). The audit includes analyses of the company's marketing
strategy, marketing organization, marketing systems, and marketing
productivity. It must be systematic in order to provide concrete
conclusions based on these analyses. To ensure objectivity, a marketing
audit is best done by a person, department, or organization that is
independent of the company or marketing program. Marketing audits
should be done not only when the value of a company's current
marketing plan is in question; they must be done periodically in order to
isolate and solve problems before they arise."

155. Marketing Audits
• The marketing audit is, in some respects, the
raw material for the strategic control. Its role
is to periodically make sure that the marketing
plan emphasizes the country's strengths in
ways that are compatible with shifting market
sentiments, current events, fashions,
preferences, needs, and priorities of relevant
market players. This helps to identify
marketing opportunities and new or potential
markets.