Marketing is a Social Process by which

Individual/Group obtain what they Need

& Want thro” creating & exchanging
products & Value with others.

Need : State of Felt Deprivation

Wants : Needs Shaped by Culture &
Individual Personality
Demand : Wants backed by Buying
power
Products : Anything that can be offered
to someone to satisfy a need or want
•Value : Difference the customer gains
from owning & Using a product & cost
of obtaining the product.
•Satisfaction : How well product perfomance
lives upto customer expectation.

•Exchange : Obtaining a desired product from

someone by offering something in return.
•Transaction : Txn. Takes place when an
Agreement is reached.

•Market : Set of all actual & potential buyers

of Product
Production Concept : Consumers
will favour prods. that are wideley
available & low in cost
Product Concept : Consumers will
favour those products that offer the
most Quality , Perfomance & Value
Selling Concept : Cust. will not buy
prod. Unless they are pushed to buy.
Marketing Concept : Focus is on
needs backed by integrated Mrktg.
Effort aimed at cust. satisfaction
Company embrace Mrktg. Concept
Sales Decline Slow Growth
Changed buying Patterns
Increased Competition

-Hurdles to be Mrktg.Oriented co.

Organised Resistance ,Slow
learning , Fast Forgetting
How Buz. & Mrktg are Changing :
1. Customers expect hi. quality &
service , price sensitive ,VFM
2.Brand Mftrs. Are facing intense
compt. – Internally / Foreign brands
3. Small retailers are succumbing to
growing power of giant retailers
Company Response & Adjustment
Rengineering Outsourcing
E-Commerce Bench marking
Global & local
Marketer Response & Adjustment :

Cust. Relationship marketing

Cust. Life time value
Customer Share Target Marketing
Customization
Building Customer Database
Channels as partners
Customer Relationship Management
CRM is process of bldg. & mntng.
profitable cust. R’ship by delevering
superior cust. Value & Satisfaction

Focus : Retaining & Growing Cust.

CR levels built dep’ing on Trget Mrkt

CR Tools : - Financial Benefits

- Co. sponsor clubs -Structural tie ups
Marketing Challenges in New
Millenium

-Connecting Technology

IT Telecom Transportation

- Connecting Customers
Selectiveley , For life , Directly
- Connecting Marketing Partners
Other Dept. internally
Supply Chain
Strategic Alliance

- Connecting World Around us

Global Connections
With value & social responsibility
 Environment

Actors & Forces that affect the Co.

to build & maintain relationship with
Target Market

Micro : Company Suppliers

Channels Customers Competitors
Public
Macro : Demographic Economic
Technological Political Cultural
 Competition

Companies that satisfy the same

customer needs

Analyzing Competitors
Identify competitors
Assess S / W /Strategies /Reaction
Selecting which competitor to attack /
avoid
Leader Challenger Follower Nicher
 Marketing Process
Customers
Segmn /Targeting /Positioning
Developing marketing Mix
Mng. Mrktg. Effort
Marketing Planning
Developing & maintaining viable fit
between goals/resources & envrl.
opportunities
Mission Objectives Portfolio Plan
New Buz. Plan : Intensive
Integrative Diversification
Consumer Buyer Behavior

The buying behavior of the end users who

buy goods & service for personal use.
Stimulus - Response model of buyer
behavior.
Factors Influencing CB
Cultural Social Personal Psycho.
Process
Need Recognition Information Search
Alternatives Evaluation
Purchase decision Post purchase behavior
New Product Adoption process
Awareness Interest Evaluation Trial Action

Organisation Buying Process

Buying Center User Buyer Decider Influencer
Gate Keeper
Factors : Environmental Orgnl. Interpersonal
Individual
Steps : Need Recgn. Need Descpn.
Prod. Spec. Supplier Search Proposal Solicitation
Supplier selection
Ordering Evaluation
 Segmentation
Mass Prod. Diff. Target Mrktg.
Segmn. Patterns : Homogeneous Diffused
Clustered
Process : Applying Successive Variables
Seg.Bases : Geo Demo Psycho Behavioral
Effective Seg: Measurable Actionable
Substantial Accessible
Targeting
Evaluate mrkt. Seg (Size attractiveness
Objective & resources )
Select seg. to target : Undiff Diff Conc
Choosing Trgt. Mrktg. Strategy ( Resource
PLC Compt. Strategy )
Positioning
Choosing Positioning Strategy
1.Identify Compt. Adv ( Prod / Service/
Channel /Image Differentiation )

2.Choosing right compt. Advantage :

How many differences to promote ?

3.Selecting Overall Positioning Strategy

More for More More for same

4. Develop positioning Statement

5. Communicating / Delivering
 Product
What is Product
Levels : Core Actual Augmented
Types: Cons / Industrial
Durable /Non Durable
Prod. Decisions :
1. Individual prod. Decisions
Attributes (Features Qty Style Design )
Branding : Branding Strategy
(brand Positioning name selection
Sponsorship :Mftrs Pvt License Co brand
Brand Development Line extn Brand
extn multi brands
 Packaging Labeling

2. Prod. Line Decisions

What is Prod. Line
Decisions : Stretching filling featuring
pruning
3. Prod. Mix Decisions
Width Length Depth Consistency

New Prod. Development Process

Idea Gen. Screening Concept
development mrktg strategy buz. Analysis
Prod. Development Test marketing
 Product Life Cycle

Prod. Development Introduction

Growth Maturity Decline
 Pricing
What is pricing
Factors affecting pricing Decisions :
Internal : Objectives Mrktg. Mix
Cost managerial Considerations
Approaches : Cost Plus Customer Compt.
Based
Strategies : 1.New prod ( Skim Penetration
2.Prod. Mix : product line Optional prod
Captive Bye prod Bundle pricing
3.Adjustment strategy : Discounts &
Allowances Segmented Psychological
promotional geographic
4. Price Changes : Cuts Hikes Responses
Place
D. C are a set of interdependent orgn.
who facilitate in the process of
Distributing / Selling /promoting products
to end users.
Why Distri. Channels :
Create Price Time
Quantity Assortment &
Possession Utility.

How Channel members Add value:

Physical possession Ownership
Promotion Negotiating Financing
Risking Ordering Payment
 Steps in channel designing

1.Analyze Channel Design Decisions

& customer needs
2. Channel objectives
3.Channel alternatives 4.Evaluate alternatives
Mrktg. Communication Mix

Advtg. Sales Promo Dir. Mrktg

Pers. selling Public Relation

Communication process

Need for integrated Comn. Mix

 Steps in Developing Communication Mix

Identify Target Audience

Determine Objectives
Design Message Select Channel
Establish budgets Promotion Mix Measure results
Manage total commn. Process

Advertising
Mission Money Message
Media Measurement