BASICS

of
Marketing

Define Marketing
American Marketing Association: Marketing is the activity, set of
institutions, and processes for creating, communicating, delivering,
and exchanging offerings that have value for customers, clients,
partners, and society at large.
Marketing makes the journey of a product from its birthplace of
factory to the hands of the consumer
It is a fascinating field involving decisions like knowing the needs of
the consumer, how to communicate the benefits to the target
audience and reaching the product in the hands of the consumer
and then ensuring that the consumer comes back for more
B2B, B2C

Marketing vs Sales
Selling is the act of persuading or influencing a customer to
buy (actually exchange something of value for) a product or
service
The selling concept, instead of focusing on meeting consumer
demand, tries to make consumer demand match the products
it has produced

Sales takes the awareness marketing has created and sells to

the people who now know not only about the product, but
now want it

SELLING V/S MARKETING

SELLING

MARKETING

STARTING POINT

PRODUCT

CUSTOMER NEEDS

MEANS

AGGRESSIVE SELLING
& PROMOTION

SUPERFLUOUS SELLING

ENDS

PROFITS THROUGH
SALES VOLUME

PROFITABILITY
THROUGH CUSTOMER
SATISFACTION

What can be sold

Services
Events
Experiences
Persons
Places
Properties
Organizations
Information
Ideas

What is a SBU
SBU Strategic Business Unit
An SBU has three characteristics:
(1) It is a single business or collection of related businesses that
can be planned separately from the rest of the company;
(2) it has its own set of competitors; and
(3) it has a manager responsible for strategic planning and
profit performance who controls most of the factors
affecting profit

4 Ps

4 Ps & 4 Cs
4 Ps

4 Cs

Product
Place
Price
Promotion

Customer Solution
Convenience
Customer Cost
Communication

7 Ps
Product

Place
Price
Promotion
People

Process
Physical Evidence

Applicable on to service
marketing
People: directly or indirectly
involved in the consumption of
a service
Process: Procedure,
mechanisms and flow of
activities by which services are
consumed
Physical Evidence: The ability
and environment in which the
service is delivered.

Selecting the Media

One
Way

Two
Way

Low

Customization

HIgh

 Single source of all these communication to bring

consistency in the communication.

Integrated Marketing Communication

Television Advertisement good for awareness but
not as powerful as Sales Promotion to generate
Action.
Cost per Thousand (CPM)
Pass Along Readership

 Web as a medium cannot be ignored.

Hyper Impulsivity: Due to closer conjunction of

Desire, Transaction and Payment.

Event Marketing/Sponsorships

Cause Marketing

Unconventional Media
Packaging
Customer
service

Events,
Trade shows

POP
Novel
Media

Sponsorships

Advertising
specialties

 6 Ms for Communication Planning:

Market
Mission
Message
Media
Money
Measurement

STP
Segmentation
A market segment consists of a large identifiable group within a market,
with similar wants, purchasing power, geographical location, buying
attitudes, or buying habits
Geographic, Demographic, Psychographic, Behavioral
Niche Marketing: A niche is a more narrowly dened group, typically a
small market whose needs are not being well served.

Target Market
Marketers evaluate each segment to determine how many and which
ones to target and enter

Positioning
Positioning is the act of designing the companys offering and image to
occupy a distinctive place in the target markets mind

The STDP Process

Identify markets
with unfulfilled
needs

Discover
segments on the
basis of consumer
characteristics

Analyse segment
potential &
finalise segments
to target

Create a
distinctive
positioning in the
minds of
consumers

Differentiate
product offering
from competitors

Segmentation
Mass
marketing

Segment
marketing

Product Life Cycle

BCG Matrix

?: A question mark requires a lot of cash; company is spending money on plant, equipment, and
personnel. Co has to think hard about whether to keep pouring money into this business.

Stars: Market leaders in a high-growth market. It does not necessarily produce positive cash ow; the
company must still spend to keep up with the high market growth and ght off competition.

Cash cow: produces a lot of cash for the company (due to economies of scale and higher prot margins),
paying the companys bills and supporting its other businesses

Dogs: generate low prots or even losses

GE Investment Priority System

Business Unit Position

BUILD

BUILD

Harvest

HOLD

BUILD

Harvest

Harvest

HOLD

Industry Attractiveness

HOLD

High

High

Medium

Medium

Low

Low

Porters Five Forces

Model of Competition
Threat of
Threat
of New
New
Entrants
Entrants

Bargaining
Power of
Suppliers

Rivalry Among Competing

Firms in Industry

Threat of
Substitute
Products

Bargaining
Power of Buyers

Product Mix
The product mix of an individual company can be described in terms of
width, length, depth, and consistency.
Width: how many different categories (tbr, tp, personal care)
Length (Line): total number of products
Depth: how many variants of each product are offered(dry, oily, normal /
size / colours )
Consistency: how closely related the various product lines are in end use,
production requirements, distribution channels, or some other way.

Product Mix
Same Brand Name

Same Product
Category

New Product
Category

New Brand Name

Line
Extension

Multi
Branding

Brand
Extension

New Brand
Development

Ansoffs Model

Branding
Brand: name, term, sign, symbol, or design, or a combination of these,
intended to identify the goods or services of one seller or group of sellers
and to differentiate them from those of competitors
Brand Equity: Brand equity refers to the marketing effects or outcomes
that accrue to a product with its brand name compared with those that
would accrue if the same product did not have the brand name
The brand can add significant value when it is well recognized and has
positive associations in the mind of the consumer. This concept is referred
to as brand equity

Brand Strategy
Line extensions: existing brand name extended to new sizes or avours in
the existing product category
Brand extensions: brand names extended to new product categories
Multibrands/Flanker Brands: new brand names introduced in the same
product category
New brands: new brand name for a new category product
Co-brands: brands bearing two or more well-known brand names

Distribution

Channel Partners/Intermediaries
Merchants: wholesalers and retailersbuy, take title to, and resell the
merchandise.
Agents: brokers, manufacturers representatives and sales agentssearch
for customers and may negotiate on the producers behalf but do not take
title to the goods
Facilitators: transportation companies, independent warehouses, banks,
and advertising agenciesassist in the distribution process but neither
take title to goods nor negotiate purchases or sales

Push vs Pull
A pull selling strategy is one that requires high spending on advertising
and consumer promotion to build up consumer demand for a product
A push promotional strategy makes use of a company's sales force and
trade promotion activities to create consumer demand for a product
In Push strategy the products has to be promoted by Producer to
Wholesalers to Retailers to Consumer

Experiential/Buzz/Viral
Experiential Marketing is the art of creating an experience where the
result is an emotional connection to a person, brand, product or idea
Viral Marketing use pre-existing social networks to produce increases in
brand awareness or to achieve other marketing objectives (such as
product sales) through self-replicating viral processes, analogous to the
spread of pathological and computer viruses. Viral promotions may take
the form of video clips, interactive Flash games, advergames, ebooks,
brandable software, images, or even text messages.

Buzz Marketing is a viral marketing technique that attempts to make each

encounter with a consumer appear to be a unique, spontaneous personal
exchange of information

Misc

Mind vs Shelf

ATL
Above the line is a type of advertising through media such as TV, cinema, radio,
print, banners and search engines to promote brands. This type of communication
is conventional in nature and is considered impersonal to customers

BTL
Below the Line uses less conventional methods than the usual specific channels of
advertising to promote products, services, etc.
Price promotion, Coupons, Gift with purchases, also gifts certificates, Competitions
and prizes, Money refunds, Frequent user/loyalty incentives, Point-of-sale displays,
Events

Horizontal vs Vertical Marketing

To Read
Advertising / PR
Market Research
Direct Marketing
Sales Promotions
Rural Marketing
CRM

Q&A
There's more than one answer to
these questions