Mktg 101 Primer

7/27/2019 Mktg 101 Primer

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What is marketing? Strategic perspective: Satisfying customer needs profitably

and better than competition

Tactical perspective: Ensuring right product in right place at

right time, at right price

Generic desire(+) or problemthat consumerseeks to solve

Need

Concrete formin which need isbeing shaped

Want

Want backed bybuying power

Demand



What is marketing? The essence of marketing can be

summarized in three great principles. Thefirst identifies the purpose and task of

marketing, the second the competitivereality of marketing and third theprincipal means for achieving the first two.



What is marketing?(1) . The Customer Value and Value Equation :

V=B/P Where;

V=ValueB= Perceived Benefits

P= Price

(Value is increased by increasing the numerator and/or reducing thedenominator)



What is marketing?(2).Competitive or Differential Advantage :

The total offer must be more attractive thanthat of the competition in order to create a

competitive advantage.

(3).Focus or the Concentration of Attention :

The task of creating Customer Value at aCompetitive advantage.



Marketing philosophies

Product

Selling

Production Marketing

Societal



Marketing philosophies Production Concept

Consumers will favour those products that are widely

available and low in cost.

Therefore increase production and cut down costs.

And build profit through volume.

Produce

SellConsumers

Company

Produce more & more

Practically sells itself



Marketing philosophies Product concept

Buyers admire well-made products and can appraise product qualityand performance

Consumers will favour those products that offer the most quality,performance, or innovative features.

Therefore, improve quality, performance and features to realize

increased sales and profits.

Produce

QualityProducts

SellConsumers

Practically sells itself,if

it gives most quality for

money



Marketing philosophies Selling concept

Consumers have normal tendency to resist.

Making sales becomes primary function and consumer satisfactionsecondary

Consumers , if left alone , will not buy enough of company’sproducts.

Therefore, promote sales aggressively & build profit through quick

turnover.

Produce

Sell it Consumers

Aggressive selling &

promotion efforts



Marketing philosophies Marketing Concept

“

LOVE THE CUSTOMER , NOT THE PRODUCT”

The key to achieving organizational goals consist in determining theneeds and wants of target markets and delivering the desiredsatisfactions more effectively and efficiently than competitors.

And build profit through customer satisfaction and loyalty.

Consumers

Produce it

Market it

Learn what they

want(MR)

Sell what they want(Satisfy

needs of customers)



Marketing philosophies Societal Marketing Concept

It is Marketing Concept (+) Society’s well being.

Balancing of following three considerations whilesetting marketing policies :

Customer’s want satisfaction

Society’s well being

Company’s profits



Marketing philosophies Societal Marketing Concept

It is Marketing Concept (+) Society’s well being.

Balancing of following three considerations whilesetting marketing policies :

Customer’s want satisfaction

Society’s well being

Company’s profits



Marketing philosophiesStarting Point Focus Means Ends

Selling Concept

Factory Products Selling &Promoting

Profit throughsales volume

Marketing Concept

Target Market Customer Needs Coordinated

Marketing

Profit through

customersatisfaction



SituationalAnalysis

MarketingObjectives

MarketingStrategy

MarketingTactics

MarketingImplement

-ation

Audit &Control

Situational Analysis

ExternalAnalysis:

Macro/microenvironment,

Porter’s 5 forces,

InternalAnalysis:

Analyze allfunctions, 5Mframework,

Portfolio analysis

Internal +ExternalAnalysis:

SWOTAnalysis



SituationalAnalysis

MarketingObjectives

MarketingStrategy

MarketingTactics

MarketingImplement

-ation

Audit &Control


External environment analysis

(PEST = Political-legal, Economic-demographic, Socio-cultural, and Technological)

Micro environment analysis (Value Chain Analysis =

Customers, Competitors, Suppliers & Distributors)

Industry or competitive analysis (Porter’s 5 Forces Analysis)



SituationalAnalysis

MarketingObjectives

MarketingStrategy

MarketingTactics

MarketingImplement

-ation

Audit &Control


Demographic

•Region

•Country

•Age

•Income

Economic

•GDP Growth

•Inflation

•Foreign Exchange Rate

Natural/Ecological

Technological

•Coffee at Home:Innovative coffee makershave simplified

consumption

•Technology Transfer forplantations

Political•Coffee Board of India

•Production Subsidies

•Export Subsidies

•Impending threat fromtea lobby

Cultural•Colonial Roots

•Coffee as stimulant

•Cultural icon in south

India

•Advent of coffee shopculture



SituationalAnalysis

MarketingObjectives

MarketingStrategy

MarketingTactics

MarketingImplement

-ation

Audit &Control


Rivalryamongexisting

firms

Threat ofNew Entrants

Determinantsof buyerpower

Determinantsof supplierpower

Threat ofsubstituteproducts

Porter’s 5 Forces

Very limited threat of newentrants as the two playersare well established

The bargaining power is withthe buyers owing to the stiff

competition

In general the bargaining power of suppliers is limitedas most of the supply comesfrom developing nations

The threat of substitutes ismore as people are observedto switch to other hot drinks



SituationalAnalysis

MarketingObjectives

MarketingStrategy

MarketingTactics

MarketingImplement

-ation

Audit &Control

Marketing Objectives

Specific Measurable Achievable Realistic Time-bound



SituationalAnalysis

MarketingObjectives

MarketingStrategy

MarketingTactics

MarketingImplement

-ation

Audit &Control

Segmentation

Targeting

Positioning



SituationalAnalysis

MarketingObjectives

MarketingStrategy

MarketingTactics

MarketingImplement

-ation

Audit &Control

Segmentation

Targeting

Positioning

Market segmentation is the process of dividing thetotal market for a good or service into several smaller,internally homogeneous groups.

Segmentation is necessary because

customers in a market have:

Differences in buying habits.

Differences in the way the good or serviceis used.

Different motives for buying .

Segmentation



SituationalAnalysis

MarketingObjectives

MarketingStrategy

MarketingTactics

MarketingImplement

-ation

Audit &Control

Segmentation

Targeting

Positioning

Segmentation Segmentation

Parameter

Sample Segments

Geographic Continents: N America, Asia, Europe, Africa

Within India: North, west, south etc.

Demographic Age, gender, income, Cohort, household type

Psychographic VALs (Innovators, thinkers, achievers,experiencers, believers, strivers, makers and

survivors)

Benefits Convenience, economy, prestige

Geo-demographic Urban, established, sophisticated town houses,

affluent retirees

Loyalty Not loyal, somewhat loyal, completely loyal

Usage Rate Heavy, Moderate & Lower (Pareto’s Law 80/20

principle)

Occasions Festivals, Everyday shopping list, self

indulgence



SituationalAnalysis

MarketingObjectives

MarketingStrategy

MarketingTactics

MarketingImplement

-ation

Audit &Control

Segmentation

Targeting

Positioning

Targeting

Targeting is the process of evaluating differentsegments and focussing on those which are mostlikely to yield the maximum benefits

SegmentAttractiven

essSubstantial

Accessible

Differentiable

Measurable

Actionable



SituationalAnalysis

MarketingObjectives

MarketingStrategy

MarketingTactics

MarketingImplement

-ation

Audit &Control

Segmentation

Targeting

PositioningPositioning

Positioning refers to the consumer’s perception of theproduct and its benefits in relation to its competitors.The aim is to occupy a clear, distinct and desirablespace in the mind of the customer



SituationalAnalysis

MarketingObjectives

MarketingStrategy

MarketingTactics

MarketingImplement

-ation

Audit &Control

Segmentation

Targeting


Identify

• Identify possible differences and competitiveadvantages - explore services, channels, people,image etc.

Chose

• How many differences to promote ?

• Which differences to promote ? IDSCAP

Select• Select the right overall positioning strategy.

Develop

• Develop a statement – To target segment , ourbrand is concept that creates point of difference



SituationalAnalysis

MarketingObjectives

MarketingStrategy

MarketingTactics

MarketingImplement

-ation

Audit &Control

Segmentation

Targeting


B e n e f i t s

Price

MORE THE SAME LESS

M O R E

T H E S A M E

L E S S



SituationalAnalysis

MarketingObjectives

MarketingStrategy

MarketingTactics

MarketingImplement

-ation

Audit &Control

PhysicalAttributes

Brand Quality

Top Down – Competition Based

Bottom Up – Cost Based

Rebates

Direct Channels– Salesforce,Company Showrooms, Distributors

Indirect Channel – Wholesellers A d v e r t i s i n g

P R

S a l e s

P r o m o t i o n s

C o n v e n t i o n s

S p o n s o r s h i p s

People

Personality BasedTrust

ProcessesProcess Based Trust

Physical EvidenceAmbience

P R O D U C T

P L A C E

P R I C E

P R O M O T I O N



SituationalAnalysis

MarketingObjectives

MarketingStrategy

MarketingTactics

MarketingImplement

-ation

Audit &Control

Market ImplementationImplementing is the process that turns marketing plans into

marketing actions to accomplish strategic marketing objectives. An

important factor influencing Implementation is the departmental

organisation.

Functional organization

Geographic organization

Product management organization

Market or customer management



SituationalAnalysis

MarketingObjectives

MarketingStrategy

MarketingTactics

MarketingImplement

-ation

Audit &Control

Measure and ControlAudit and Control involves constant monitoring during

implementation to ensure that the intended outcomes are

achieved.

•Monitor sales and profits againstprojections and annual plans

•Take corrective action as and whennecessary

Operating Control

•Ensure current strategies arematched to opportunities

• Periodically assess overallapproach to the marketplace

Strategic Control



Product Life Cycle (PLC)

Product Development: New ideas/possible inventions Market analysis – is it wanted? Can it be produced at a profit? Who is it likely to

be aimed at?

Product Development and refinement

Test Marketing – possibly local/regional

Analysis of test marketing results and amendment of product/production process

Preparations for launch – publicity, marketing campaign




Introduction/Launch: Advertising and promotion campaigns

Target campaign at specific audience?

Monitor initial sales

Maximise publicity

High cost/low sales

Length of time – type of product




Growth: Increased consumer awareness

Sales rise

Revenues increase

Costs - fixed costs/variable costs, profits may be made

Monitor market – competitors reaction?




Maturity:

Sales reach peak Cost of supporting the product declines Ratio of revenue to cost high Sales growth likely to be low Market share may be high Competition likely to be greater Price elasticity of demand? Monitor market – changes/amendments/new strategies?




Decline and Withdrawal: Product outlives/outgrows its usefulness/value Fashions change

Technology changes

Sales decline

Cost of supporting starts to rise too far

Decision to withdraw may be dependent on availability of new products and

whether fashions/trends will come around again?



Q & A



AssignmentAnalyze a minimum of 5 advertisement campaigns of a Brand of yourchoice and deliver on the following:

1. Targeting and Positioning of each separate Campaign2. Competition Benchmarking3. Comment on the Coherence of the campaigns deployed

Expected Length: Maximum of 3 Pages

MESSAGE

LOCATION

ARCHETYPE

D e m o g r a p

h i c

P s y c h o g r a p

h i c

B e n e f i t

Advertisement

AnalysisFramework



Contact

Deepak Srinivasan+91 [email protected]

Avishek Ray+91 9546187923

[email protected]

Documents

Mktg 101 Primer