1. The document discusses the evolution of marketing concepts from production and product-focused to more customer-centric approaches like the marketing concept. 2. It covers key marketing mix elements like product, price, place, and promotion and how firms can create and deliver value to customers through these elements. 3. The marketing mix, brand positioning, pricing strategies, and importance of understanding customer needs and satisfaction are some of the major topics discussed.

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Sub: Marketing: Art & Science of Planning to Execution<br />Sessions: 1-8<br />Marketing?<br />Creating and delivering better customer value is the only route by which firms implement the marketing concept<br />Customer satisfaction is the central theme of this concept<br />Marketing is the Anticipation, Management and Satisfaction of Demand through the Exchange Process.<br />Anticipation of Demand requires a firm to do consumer research in anticipation of market’s potential and consumers’ desires.<br />Evolution of Marketing:<br />The Exchange Concept.<br />The Production Concept.<br />The Product Concept.<br />The Selling Concept.<br />The Marketing Concept.<br />The Production Concept: Supply creates its own demand <br />If a product is made, somebody will want to buy it. <br />The implications of this orientation are:<br />Pricing was based on the costs of production and distribution<br />Research was limited to technical product research <br />Packaging was designed primarily to protect the product <br />Communication was minimal <br />The Product Concept:<br />High product excellence (Quality is the key)<br />Improved products <br />New products and<br />Ideally designed and engineered products<br />Advertisement (first is protection , and second is differentiation) <br />The Selling Concept:<br />Output “Sold” to Consumers<br />Looks at Individual, Single Consumer<br />Seeks Sales Rather than Profit<br />Short-Term Goal Orientation<br />Concerned with Current Inventory Reduction<br />Narrower View of Consumer Needs<br />Little Adaptation to Environment (Macro economical factor)<br />Informal Planning and Feedback<br />Marketing Myopia: <br />Over emphasizing on exchange concept, production concept and selling concept overshadowing the need, want and demand of the customers, leads to shortsightedness of business.<br />Exemplas -- Hence catch-up and Wal-Mart<br />A shift in orientation:<br />From Production to Marketing<br />From Product to Customer<br />From Supply to Demand <br />From Sales to Satisfaction<br />From Internal to External<br />Marketing?<br />Creating and delivering better customer value is the only route by which firms implement the marketing concept<br />Customer satisfaction is the central theme of this concept<br />Marketing is the Anticipation, Management and Satisfaction of Demand through the Exchange Process.<br />Anticipation of Demand requires a firm to do consumer research in anticipation of market’s potential and consumers’ desires.<br />Management of Demand includes:<br />Stimulation: motivates consumers to want firm’s offerings <br />Facilitation: makes it easy to buy offerings<br />Regulation: involves balancing inventory to consumer demand<br />Satisfaction of Demand involves: product availability, product performance, perceptions of safety, and after-sale services.<br />An Exchange Process: <br />Includes the agreement for payment: cash/credit/promise to pay or support for a firm, institution, idea, or place.<br />A social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others<br /> <br />left26416000<br />Value Proposition: <br />The set of benefits or values a company promises to deliver to consumers to satisfy their needs.<br />The firm can enhance value by adjusting any of the elements<br />Increasing the functionality of the product.<br />Reducing the price.<br />Giving better service support.<br />Giving the customer easy access to the product.<br />Offering beneficial communication.<br />Marketing is value creating and value delivery process<br />Value selection<br />Value creation<br />Value communication<br />Making value proposition<br />Value enhancement<br />Essence of marketing:<br />How do you determine what customer’s want?<br />How do you serve well than anyone else?<br />How do you make sure they come back to you again and again? (Customer loyalty)<br />How do you get bigger share of their wallet?<br />How do you delight them with experience that they come back to you every time?<br />Marketing Metamorphosis:<br />As consumers change, change in marketing strategies.<br />The psyche and behavior of urban consumer is changing rapidly.<br />Continuing economic prosperity.<br />Profile of customer-centric organization:<br />Shared values and beliefs.<br />Skills in understanding and responding to customers.<br />Market intelligence is important.<br />A symbiotic coordination.<br />The scope of Marketing:<br />Goods<br />Experiences<br />Events<br />Persons<br />Places<br />Properties<br />Organizations<br />Information<br />Ideas<br />Marketing Mix: (Coined by James Culliton)<br />The vehicle for creating delivering customer value.<br />This is the vehicle to win customer, there are several subsystems within this the set of controllable, tactical marketing tools that the firm blends to produce the response it wants in the target market.<br />Product: (Characteristics of Product)<br /> 1. Variety<br /> 2. Quality<br /> 3. Design<br /> 4. Features<br /> 5. Brand name<br /> 6. Packaging<br /> 7. Services<br />The core or basic constituent<br />Associated Factors<br />Product Classification<br />Convenience Products<br />Shopping Products<br />Specialty Products<br />Unsought Products<br />Product Mix/Product Width:<br />Product line.<br />Product line length.<br />Product depth.<br />Brand:<br />A name, term, sign, symbol or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.<br />Attributes of Strong Brands:<br />Excels at delivering desired benefits<br />Stays relevant<br />Priced to meet perceptions of value<br />Positioned properly<br />Communicates consistent brand messages<br />Uses multiple marketing activities<br />Understands consumer-brand relationship<br />Supported by organization<br />Monitors sources of brand equity<br />Brand Extension:<br /> 1. Line Extension<br /> 2. Category Extension<br /> 3. Umbrella Branding<br /> 4. Brand Rejuvenation<br />Product Life Cycle: <br />PLC Concept helps in marketing strategy formulation:<br />Facilitates preplanning the product launch<br />Facilitates prolonging the profitable phase<br />Facilitates investment decision on products<br />Facilitates choice of the right time to exit<br />Provides useful clue for managing customers<br />Packaging:<br />All activities of designing and producing the container for a product.<br />The process and procedures used to protect material. <br />A wrapping, container, or other protective holder for a product that keeps it fresh (in the case of food or beverages) and unharmed until it is sold or conveyed.<br />The container is called package.<br />Factors that have contributed to the growing use of packaging as marketing tool:<br />Self Service:<br />Consumer affluence:<br />Company and Brand Image:<br />Decision areas of Packaging:<br />Package materials: changing trends from wood to paper and plastics<br />Plastics the new source of packaging medium<br />Package aesthetics<br />Package size and convenience<br />Brand Equity :<br />Brand Equity is a set of assets (and liabilities) linked to a brand’s name and symbol that adds to (or subtracts from) the value provided by a product or service to a firm and/or that firm’s customers.<br />Positioning: <br />One descriptive sentence or slogan the company is known for. <br />One specific idea that first comes to mind about the product. <br />Volvo that one thing is “Safety.”<br />McDonalds is “A fun place for kids.” <br />Four strategic questions?<br />Who am I ?<br /> Positioning by corporate identity:<br />What am I ?<br /> Benefit-related positioning:<br /> Positioning by usage:<br /> Price-quality positioning:<br />For whom am I ?<br />Why me?<br /> Positioning by unique attribute:<br /> Positioning by competitor:<br />Perceptual mapping:<br />Perceptual mapping is a tool which helps market researchers determine how their product compares to the competition in terms of selected product attributes.<br />The added value a brand name identity brings to a product or service beyond the functional benefits provided.<br />The accrued value of a brand, developed over a period of time, that creates a positive brand image, drives demand, and modifies client attitudes toward the brand.<br />Co-Branding:<br />Co-branding is an alliance or temporary linking of one or more brands for<br /> An advertising or promotional campaign.<br />Dual product offering is the need of the day.<br />Single brand takes free ride on the popularity of the other brands.<br />Just married for better returns<br />For the consumers, it provides benefits of two products or services through a single package.<br />For the marketers it is the way to reach out to larger markets, without incurring additional cost<br />Innovative marriages of a different kind of boardrooms<br />Extra value offered to the customers<br />Impetus on new customer acquisitions<br />Price: <br />Price is the sum of all the values that consumers exchange for the benefits of having or using the product or service.<br />“rent, tuition, fees, premiums, honoraria, salaries, wages, commissions, <br />Price is the only element in the marketing mix that produces revenues (PxQ); all others represent costs.<br />Price is the value placed on what is exchanged. Something of value is exchanged for satisfaction and utility, includes tangible (functional) and intangible (prestige) factors. <br />Types of Pricing Objectives:<br />Market share, pricing objectives used to increase or maintain market share. <br />Profit<br />Survival, accept short term losses necessary for survival <br />Customer satisfaction<br />Entering into a new market<br />Skimming pricing: <br />The practice of ‘price skimming’ involves charging a relatively high price for a short time where a new, innovative, or much-improved product is launched onto a market.<br />The objective with skimming is to “skim” off customers who are willing to pay more to have the product sooner; prices are lowered later when demand from the “early adopters” falls.<br />Generate much needed initial cash flow, cover high R&D costs. <br />This type of pricing structure works very well for products that are in demand or where there are few competitors - electronic equipment for example. <br />Basic principles of Pricing:<br />Prices must at least cover costs<br />The best way to lower the price is to lower the cost<br />Prices must reflect the environment in which they operate<br />Prices must be within the range of what customers are prepared to payz<br />The price that you set should represent a fair return for your time, talent risk and investment<br />