This document provides an overview of key marketing concepts including defining marketing, the evolution of marketing approaches, analyzing customers and the marketing mix. It discusses the importance of understanding customer needs and roles in the buying process. The marketing mix elements of product, price, place and promotion are explained. Tools for strategic analysis like Ansoff's matrix and the product life cycle are also summarized.

1. Basics of Marketing
Anshu Jalora, Ph.D.
NMIMS, Mumbai

2. What is Marketing?
• Marketing is about creating, communicating, and delivering value
to customers, and managing customer relationships in ways that
benefit the organization and its stakeholders.
• Marketing is not just a department, but a company orientation; all
department must embrace marketing … “Think Customers”
• Market Evolution
– Product era
– Production & Sales era
– Marketing era
– Relationship era
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3. Holistic Marketing Dimensions
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4. Customer Roles
• Initiator (Family Vacation Trip)
– Recognizes needs / wants • Initiator: Wife
• Influencer • Influencer: Friends
– Influences the purchase • Buyer: Husband
decision, the actual purchase,
and/or the use of the product /
• User: Family
service
• Buyer (Machinery)
– Makes the purchase • Initiator: Marketing officer
• User • Influencer: Engineering office
– Uses or consumes the product • Buyer: Corporate buyer (finance)
or service
• User: Shop floor workers
(operations)
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5. Analyzing Customers
• Factors influences • Needs spectrum
customer behavior – Needs, Wants, Demands
– Cultural factors • Buying Decision Process
– Social factors – Problem recognition
– Family – Information search
– Personal factors – Evaluation of
• Age & state alternatives
• Occupation & earnings
– Purchase decision
• Personality & self concept
• Lifestyle & value
– Postpurchase behavior
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6. Marketing Overview
Situation
Analysis
Strategic
Planning
Tactical
Planning
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7. 5Cs for Situation Analysis
• Analyzing Customers
– Needs Analysis
Types: Normative, felt, expressed, comparative
Hierarchy: Physiological, safety, social, esteem, self actualization
– Decision Making Process Analysis
(Recognition, Information Search, Evaluation of Alternatives, Purchase, Post
Purchase Evaluation)
• Analyzing the Context
– Demographic, Economic, Socio-cultural, Political/Legal, Technological, Natural
• Analysis of the Company
– Business Model, Competitive Strategy, Competitive Advantage Analysis, Resources, Skills
• Collaborators and Complementers Analysis
• Competitors Analysis
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8. Ansoff’s Matrix
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9. Tactical Planning
• Marketing Mix
– Product
– Price
– Place (channels for reaching customers)
– Promotion
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10. Product Strategy

11. Five Product Levels
At what product level would you see high degree of
competitive action?
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12. Strategic Portfolio Analysis
• BCG Matrix • GE Matrix
– Growth vs. Market Share – Business Strength vs.
Industry Attractiveness
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13. New Product Development

14. Categories of New Products
New-to-the-world Disruptive
Innovation
New product lines
Additions
Improvements
Repositionings
Incremental
Cost reductions Improvements
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15. NPD Process
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16. Product Life Cycle Management
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17. Each stage of the product life cycle calls for
different marketing strategies
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18. Pricing

19. Pricing – Art or Science!!
Psychological Side of Pricing Analytical Side of pricing
– Reference prices – Price elasticity of demand
– Anchoring – Brand price trade off (DCM)
– Price-Quality inferences – Markdown price optimization (Retail)
– Price cues – Revenue management (Airline)
• Left to Right pricing – Dynamic pricing
• Odd number ending/ x.99 endings – Segmented pricing practices
convey discounts – Value based pricing
• Sale written next to price
Price Adaptation Strategies
• Red color, bold font to indicate
– Customer segment pricing (geography,
compelling prices (overstock.com)
channel, type of customer, size, etc.)
• Non rounded prices as value
– Promotional pricing
prices
– Discounts (targeted; cash, quantity,
– Fair price!
volume, seasonal)
– Bundle pricing
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20. Steps in Setting Price
Margin Contribution = Sales Volume x (Price – Costs)
Sales Volume = f(Price, Promotions, Competition Strategy, …)
Select the price objective • Cost plus
• Target margin
• Follow the competition /
Determine demand
market go rate
• Perceived value pricing
Estimate costs • Value based
• Auction-type pricing
Analyze competitor price mix
Q. Which is the best
Select pricing method desirable pricing method?
Select final price
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21. Distribution and Channel
Strategies

22. Integrated Marketing Channels
A marketing channel system is the Designing a marketing channel system
particular set of interdependent – Analyze customer needs
organizations involved in the – Establish channel objectives
process of making a product or – Identify alternatives
service available for use or – Evaluate alternatives
consumption. Channel service output
– Type of members – Lot size (single vs. multiple units)
– Number – Waiting / delivery time
– R&R – Spatial convenience
Categories of buyers – Product variety
– Habitual shoppers; Deal hunters; – Service backup
Variety lovers; High-involvement Evaluate alternatives on Value-add vs.
– Quality/Service; Price/Value; Affinity costs
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23. Integrated Marketing
Communications

24. Designing & Managing IMC
Marketing communications are the IMC Builds Brands
means by which firms attempt to – Awareness
inform, persuade, and remind – Image
consumers, directly or indirectly, – Response
about the products and brands – Relationship
they sell. Information flow process
Modes – Sender, Receiver, Message (media)
– Advertising – Encoding and Decoding
– Sales promotion – Response, Feedback
– Events and experiences – Noise
– Public relations and publicity AIDA Model
– Direct marketing – Attention
– Interactive marketing – Interest
– Word-of-mouth marketing – Desire
– Personal selling – Action
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25. Developing effective communications
• Identify target audience
• Determine objective
– Category/need, awareness, attitude – positive or negative, purchase intention
• Design Communications
– Message strategy – reward and moment of reward, creative, source
• Select channels
– Personal, non-personal
• Budget
• Media mix
– Type of product, Buyer-readiness, product life-cycle
• Measure effectiveness
• Integration
– Coverage, contribution, commonality, complementarity, versatility, cost
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26. Sales Promotions
Sales promotions give an incentive to Consumer promotion tools
buy, mostly short term focused. – Samples, coupons, cash refund, price
– Consumer promotion packs, premiums, loyalty frequency
programs, prizes, free items, tie-
– Trade promotion
in/cross promotions, pop displays,
– Business & sales-force promotion product warranties
What is the potential downside of Trade promotion tools
sales promotion strategy? – Price off, allowances, free goods
Compare advertising and sales Business & sales force promo tools
promotion strategies. – trade shows and conventions, sales
Sales promo objective: Trial, short- contest
run sales, end of season sale, new
product prospecting, offsetting How will you ensure that your sales
competitive actions promo is margin accretive?
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27. Business-to-Business Marketing
• Categories of Business Demand
– Derived, Volatile, Joint, Inelastic, Inventory adjustment
• Business Buying Situations
– New-task buying (first time)
– Straight re-buy
– Modified re-buy
– Reciprocity
• Factors that influence
– Environmental, organizational, and interpersonal factors
– Budget, cost, and profit considerations
– The organization’s goals and human resources
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28. Organizational Buying Process
• Anticipate or recognize a problem/need/opportunity and a
general solution
• Determine the characteristics and quantity of a needed good
or service
• Describe characteristics and the quantity of a needed good or
service
• Search for and qualify potential sources
• Acquire and analyze proposals
• Evaluate proposals and select suppliers
• Select an order routine
• Obtain feedback and evaluate performance
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