MARKETING

SCIENCE
ECONOMICS
PSYCHOLOGY

What is marketing?
Marketing is a process of seeking, matching and programming.
Marketing is about identifying and meeting human and social needs.
One of the shortest definitions of marketing is “meeting needs
profitably”
 Marketing originated from a Latin word “Marcatus”
 Market place, market space, meta markets.
 Market place- physical store.

Market…….ing—donating a verbal action.

A process
…… a business activity
 Creating customer experience
 Behind the scene activities to convert curiosity to attention.
 Is giving words to your products/services so that it could
communicate for itself its benefits.
 Bridging gap between what consumer needs and what brand
needs.
ORIGIN OF MARKETING

PRODUCTION ERA
1930

SALES ERA
1950

MARKETING ERA
PRESENT
 MARKETING MIX

Marketing mix is a combination of factors that can

be controlled by a company to influence
consumers to purchase its products.
It also refers to the set of actions or tactics, that a
company uses to promote its brand or product in
the market.
“An executive is like a chef who mixes ingredients,
who sometimes follow a recipe as he goes along,
sometimes adapts a recipe to the ingredients
immediately available, and sometimes
experiments with or invents ingredients no one
else has tried” --- Culliton, J. 1948
 UPDATING 4 P’S

 PRODUCT PROCESS
 PRICE PEOPLE
 PLACE PHYSICAL EVIDENCE
 PROMOTION

3 FORMS OF MARKETS

 CONSUMER MARKETS
 BUSINESS MARKETS
 INSTIUTION/ GOVERNMENT AND
NGO MARKET
 TYPES OF DEMAND

Type of demands Consumer Preference Example

1. NEGATIVE Dislike the product
2. DECLINING Buy the product less Wired
frequently earphones, Ipod
3. FULL Adequately buying
4. OVERFULL Want to buy much more Sanitizers and O2
than available cylinders during
pandemic, FMCG

5. UNWHOLESOME Consumer attracted but

have undesirable social
consequences

6. LATENT Strong desire to buy, a Switching to

new alternative as electric vehicles,
customer cannot be Online books,
satisfied by an existing OTT
product.
7. IRREGULAR Seasonal, monthly,
weekly, or hourly basis.
8. Non existent Uninterested in the
product
 TEN ENTITIES THAT’S MARKETED

 GOODS: Physical goods constitute the bulk of most countries’

production and marketing effort. Examples- Refrigerators,
television sets, food products.
 SERVICES: As economies advance, a growing proportion of their
activities is focused on the production of services.
 EXPERIENCES: By Orchestrating several services and goods, a
firm create, stage and market experience.
 EVENTS: Marketers promote time-based events such as trade-
shows, artistic performance, etc.
 PERSONS: Celebrity marketing is a major business. Today, every
major film stars have an agent, a personal manager and ties, to
a public relations agency.
 PLACES: Cities, state, regions and whole nations compete
actively to attract tourists, factories, company headquarters
and new residents.
 PROPERTIES: Properties are intangible rights of ownership of
either real property or financial property (stocks, bonds)
 ORGANISATIONS: Organisations actively work to build a strong,
favourable and unique image in the minds of their target
publics.
 INFORMATION: Information can be produced and marketed as
a product. This is essentially what schools and universities
produce and distribute at a price to parents, students and
communities.
 IDEAS: Every market offering includes a basic idea.
 IDEAS?

Every marketer offering includes a basic

idea.

CHARLES REVSON
“In the factory we make cosmetics, in the
store we sell hopes”.
 VARIOUS ORIENTATION OF COMPANIES
TOWARDS ITS MARKET PLACE/ARENA

1. PRODUCTION CONCEPT: The production concept is a

marketing philosophy where your business focuses on
producing more goods in such a way to drive prices
down.
2. PRODUCT CONCEPT: A product concept is a
description of product or services, at an early stage of
product lifestyle. It is generated before any detailed
design work is undertaken and takes into
consideration market analysis, customer experience,
product features, product cost and strategic fit.
3. SELLING CONCEPT: The selling concept is a part of
marketing and one of the several concepts that make
up a marketing strategy.
4. MARKETING CONCEPT: It is preoccupied with the idea
of satisfying the needs of the customer by means of
the product as a solution to the customer’s problems.
5. HOLISTIC MARKETING CONCEPT: The concept is
based is based on development, design and
implementation of marketing programs, processes
and activities that recognizes the breadth of the
system and their interdependencies.
 HOLISTIC MARKETING CONCEPT

Holistic Marketing has 4 broad components

INTEGRATED
MARKETING

HOLISTI RELATIONSHIP
INTERNAL C MARKETING
MARKETIN MARKETI
G NG

CUSTOMER
Various department CHANNEL
PERFORMANCE
PARTNERS
and management MARKETING

Sales revenue, Brand revenue

and Environment Legal
 SELLING CONCEPT

PRODUCTS DON’T NECESSARILY

SELL THEMSELVES. CUSTOMERS
PHILOSOPHY MUST BE CONVINCED TO BUY
PRODUCTS.
MAXIMIZE SALES
REVENUE

OBJECTIVE

AGGRESSIVE PROMOTION
HOW TO CREATE DEMAND
 ENVIRONMENTS OF MARKETING

 COMPETITOR
 ORGANIZATION
 SUPPLIERS
 MARKET
 INTERMEDIARIES
MICRO ENVIRONMENT  CUSTOMERS

MACRO ENVIRONMENT

 POLITICAL
 ECONOMIC
 SOCIAL
 TECHNOLOGICAL
 LEGAL
 ENVIRONMENTAL
 CULTURAL
 INTERNATIONAL
 NATIONAL
FIRM  DEMOGRAPHICS

 INTERNAL ENVIRONMENT
 EXTERNAL ENVIRONMENT: Macro and micro
environment

HUMAN RESOURCE
PRODUCTION
R&D
FINANCIAL CAPABILITY
MARKETING DEPARTMENT
 GE McKINSEY MATRIX

 MARKET SIZE
 EXPECTED MARKET GROWTH RATE
 MARKET PROFITABILITY TREND
 PRICING TRENDS
 COMPETITION LEVEL
 ABILITY TO DIFFRENTIATE
 DEMAND VARIABILITY

DETAILED GE McKINSEY MATRIX

 TOTAL MARKET SHARE

 MARKET SHARE GROWTH RELATIVE TO
COMPETITORS
 CUSTOMER LOYALTY
 RELATIVE BRAND STRENGTH, BRAND
RECOGNITION
 COST STRUCTURE COMPARED TO COMPETITORS
 DISTRIBUTION STRENGTH AND PRODUCTION
CAPACITY
 MANAGEMENT STRENGTH
 BASES(BASIS) FOR SEGMENTATION

 CUSTOMER CHARACTERISTICS: Characteristics is

formed out of a individual’s character, ingrained in
him/her from the place he is from, the family, the
country, his/her age and association.
 CUSTOMER BEHAVIOUR: Behaviour is depended
on the particular situation, a person’s awareness
about the situation and his actions wrt to the
situation.

BASES FOR CONSUMER MARKET SEGMENTATION

CUSTOMER CHARACTERISTICS CUSTOMER BEHAVIOUR

Consumer Characteristics Product Characteristics or

People oriented approach
Or People oriented
approach 1. OCCASIONS
2. BENEFITS
1. GEOGRAPHIC BASES
3. USER STATUS
2. DEMOGRAPHIC
4. USAGE RATE
BASES
5. LOYALTY PATTERN
3. PSYCHOLOGICAL
6. READINESS STAGE
BASES
7. ATTITUDES
(Lifestyle, personality TOWARD
and values) PRODUCTS.
 LEVELS OF MARKET SEGMENTATION

MASS MARKETING
mm: Marketing mix
One mm for all: Coke 6.5-ounce
bottle

SEGMENT MARKETING
One or more mm targeted to one or more
segments: - A, B, C Segment cars

NICHE MARKETING
One or more mm targeted to one or more
sub-segments: - Diabetic Living or Ebony,
People magazines.

MICRO MARKETING (1-1)

LOCAL INDIVIDUAL
One or more mm targeted to specific
MARKETIN MARKETING
individuals or communities: - B1G2,
G private jet manufacturers, Emu Today and
tomorrow, Potato review
 EXAMPLES OF NICHE MARKETING

LAW FIRM NICHES

 Single dads in Northern California
 Car accident victims in Kerela.

PERSONAL TRAINER NICHES

 New and expecting mothers in the suburbs
 Military/Police programs candidates.

GEOGRAPHIC NICHE

A restaurant that offers local delicacies in a

cosmopolitan city.

OCCASIONS

A event house which specializes only in bachelorette

parties.
ANY SEGMENT SHOULD HAVE THE FOLLOWING (AM
SAD)

 A- ACTIONABLE
 M- MEASURABLE
 S- SUSTAINABLE
 A- ACCESSIBLE
 D- DIFFERENTIABLE

BASES OR CRITERIA FOR SEGMENTATION

DEMOGRAPHIC VARIABLES GEOGRAPHIC VARIABLES

1. AGE 10. RELIGION 1. REGION
2. GENDER 11. SOCIAL CLASS 2. URBAN, SUBURBAN, RURAL
3. RACE 3. CITY SIZE
4. ETHNICITY
4. COUNTY SIZE
5. INCOME
6. EDUCATION 5. STATE SIZE
7. OCCUPATION 6. MARKET DENSITY
8. FAMILY SIZE 7. CLIMATE
9. FAMILY LIFE CIRCLE 8. TERRAIN

PSYCHOLOGICAL VARIABLES BEHAVIORISTIC VARIABLES

1. PERSONAL ATTRIBUTES 1. VOLUME USAGE
2. MOTIVES 2. END USE
3. LIFESTYLES 3. BENEFIT EXPECTATIONS
4. BRAND LOYALTY
5. PRICE SENSITIVITY
GEOGRAPHIC SEGMENTATION
It refers to segmenting markets by region of a country or the
world, market size, market density or CLIMATE.
DEMOGRAPHIC SEGMENTATION
It refers to market segmentation according to age, race,
religion, gender, family size, ethnicity, income and education.

Positioning
Value preposition =POP+POD+CFR

BRANDED HOUSE or Umbrella brand: Primary and secondary

name both.
 TARGETING

TARGETING is the second stage to the segmentation

process (STP). After the market has been separated
into its segments, the marketer will select a single
segment or series of segments and
‘target’ it/them MARKETING MIX
 SELECTING A TARGET MARKET

5 Patterns of target market selection (Product X Market

selection ways)
SINGLE-SEGMENT SELECTIVE SPECIALIZATION PRODUCT
CONCENTRATION
SPECIALIZATION
M1 M2 M3 M1 M2 M3 M1 M2 M3

P1

P2
P3

MARKET SPECIALIZATION FULL MARKET COVERAGE

M1 M2 M3 M1 M2 M3

P1
P2

P3

UNDIFFRENTIATED DIFFRENTIATED
MARKETING MARKETING
 POSITIONING: SELECT, ORGANIZE, INTERPRET INFORMATION

 POSITIONING IS ALL “PERCEPTION”

 CREATES CUSTOMER-FOCUSED VALUE PREPOSITION
 VALUE PREPOSITION IS A STATEMENT BY A
COMPANY ABOUT AN OUTCOME THAT A
CONSUMER OR ORGANISATION CAN HAVE USING
THE COMPANIES PRODUCT OR SERVICES.
 PRODUCTS OR SERVICES ARE “MAPPED” TOGETHER
ON A ‘POSITIONING MAP’

COMPETITIVE ADVANTAGE

COST ADVANTAGE PERSONNEL

COMPETITIVE ADVANTAGE DIFFERENTIATION
(SIMILAR PRODUCT AT
IS ANYTHING THAT A LOWER COST)
PARTICULAR COMPANY
DOES BETTER COMPARE TO CHANNEL
ITS COMPETITORS IN THE DIFFERENTIATION
DIFFERENTIAL ADVANTAGE
SAME INDUSTRY.
(PRICE PREMIUM FROM
UNIQUE PRODUCT)
IMAGE
DIFFERENTIATION
 THE BRAND POSITIONING PROCESS

1. Identify competitive frame of reference

2. Select an ideal frame of reference for one’s own brand.
3. Identify set of pop and pod.
4. Identify set of competitive advantage.
5. Choose the right competitive advantage.
6. Select an overall positioning strategy.
7. Communicate and deliver the chosen position to the
market.