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CHAPTER-1 The Nature of Marketing

My definition of marketing Marketing is the process of understanding and influencing markets. Marketing as a process Marketing is a process that marketing managers execute. Analysis Markets must be understood, and this understanding flows from analysis Planning Execution The marketing events are executed in the markets: advertisements are run, prices are set, sales calls are made, etc. Monitoring Markets are not static entities and thus must be monitored at all times. The D Roles of a marketing manager Marketing managers play many roles, and we can describe them with words that begin with the letter D: Detective The marketer is charged with understanding markets, and thus must spend considerable time learning about consumers, competitors, customers, and conditions in the markets Designer Decision maker Decision Influencer Diplomat Marketers design marketing events that others must execute: the sales force must execute the sales plan, the advertising agency must execute the advertisements, etc. Discussant All of these roles require considerable discussion among many parties within and outside the company Managing the Marketing Mix Product Promotion Price Place Operating within constraints Competition Channels Consumers Conditions Company

2 Marketing is Collaboration The nature of marketing requires marketing managers and professionals to work together on all aspects of marketing.

TYPES OF GOODS
Manufactured goods Agriculture goods Natural raw materials

products

Natural raw material Industrial

Manufactured goods Consumer industrial

Agricultural goods Consumer industrial

DEFINITION OF MARKETING
AMEICAN MARKETING ASSOCIATION defines mktg as the process of planning, and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchange that satisfied individual and organizational objectives. The Chartered Institute of Marketing define marketing as The management process responsible for identifying , anticipating and satisfying customer requirements profitability

FUNCTIONS OF MARKETING

Concepts of marketing
Production Oriented: The focus of the business is not the needs of the customer, but of reducing costs by mass production. Product Orientation: The company believes that they have a superior product, based on quality and features, and because of this they feel their customers will like it also.

4 Sales Orientation: The focus here is to make the product, and then try to sell it to the target market. Market Orientation: Puts the customer at the heart of the business. Customer orientation Mktg information sys Integrated mktg activity Dual objective

Exchange orientation:mktg involve exchange of product between a seller and a buyer usually based on money.

SELLING AND MKTG DIFFERENCES

SELLING CONCEPT FOCUS: products something that had to be sold to the customer MEANS: selling and promoting OBJECTIVES: profits through sales volume PART: selling is mktg part

MARKETING CONCEPT

FOCUS: products to filling a customer need something i.e. bought by the customer

MEANS: integrated mktg mix

OBJECTIVES: profit through customer satisfaction

MARKETING ENVIORNMENT
1. Micro Environmental Factors
Customers Employees Suppliers Shareholders Media Competitors

2. Macro Environmental Factors Legal Psychological Physical Economical Technological Societal

CHAPTER-2

Market Segmentat ion

Demographic segmentation :- which means a study of population
DEMOGRAPHIC SEGMENTATION

AGE

GENDER

INCOME

LIFE CYCLE

PSYCOGRAPHIC SEGMENTATION:PSYCOGRAPHIC SEGMECNTATION

LIFE STYLE

SOCIAL CLASS

PERSONALITY

Behavioural segmentation:- refers to why people purchase a product or service

BEHAVIOURAL SEGMECNTATION

BENEFIT

OCCASSION

USAGE

Lifecycle

Lifecycle Lifecycle

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Geographicsegmentation
Geographical segmentation

Place of residence

Region

Urban-rural Suburban

Size, climate zone of the city

TARGET MARKETING
Undifferentiated marketing - Sometimes referred to as mass marketing the firm may decide to aim its resources at the entire market with one particular product. Coca Colas original marketing strategy was based on this form. One product aimed at the mass market in the hope that a sufficient Undifferentiated marketing amount of buyers would be attracted.

ONE PRODUCT

ENTIRE MKT

Differentiated marketing strategy - Where the firm decides to target several segments and develops distinct products/services with separate marketing mix strategies aimed at the varying groups. An example of this would be airline companies offering first (segment 1) , business (segment 2) or economy class tickets (segment 3) , with separate marketing programmes to attract the different groups.
Differentiated marketing

SEG 1

COMPANY

SEG 2

SEG 3

Concentrated Marketing: Where the organization concentrates its marketing effort on one particular segment. The firm will develop a product that caters for the needs of that particular group. For example Rolls Royce cars aim its vehicles at the premium segment, same as Harrods within the UK. ww w.learnmarketing.net

Concentrated marketing

SEG 1 COMPANY SEG 2 SEG 3

BASIS FOR SEGMENTATION

PRODUCT POSITIONING

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THE PROCESS OF CREATING AN IMAGE FOR THE PRODUCTS IN THE MINDS OF CUSTOMERS
1. APPROACHES TO POSITIONNING: Attribute Price and quality Product class Competitors

2. POSITIONING STRATEGIES Product and Attributes Benefit offered Price Quality Application User Category Specific usage situation 3. SUCESSFUL POSITIONING STRATEGY Clarity Consistency Credibility Competitiveness

Consumer Buying Behaviour

The consumer buying process is a complex matter as many internal and external factors have an impact on the buying decisions of the consumer purchasing a product there several processes, which consumers go through 1. 2. 3. 4. 5. Problem/Need Recognition Information search Evaluation of different purchase options. Purchase decision Post Purchase Behaviour

buying behaviour summaries:/PROCESS There are five stages of consumer purchase behaviour Problem/Need Recognition Information search. Evaluation of purchases.

11 Purchase decision. Post purchase behaviour. Culture has an impact on the company. Marketers should take into account Maslows hierarchy of needs.

MASLOW HIERARCHY THEORY

BUYING ROLE

CHAPTER-3 Marketing Mix

The marketing mix principles are controllable variables which have to be carefully managed and must meet the needs of the defined target group. All elements of the mix are linked and must support each other

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Marketing Mix (6ps)

Product:

Product Decisions

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Branding

Quality

Features

We must remember that Marketing is fundamentally about providing the correct bundle of benefits to the end user, hence the saying Marketing is not about providing products or services it is essentially about providing changing benefits to the changing needs and demands of the customer

Price:
Pricing is the only mix which generates a turnover for the organization. The remaining 3ps are the variable cost for the organization. It costs to produce and design a product; it costs to distribute a product and costs to promote it. Price must support these elements of the mix. Pricing is difficult and must reflect supply and demand relationship.

Promotion:A successful product or service means nothing unless the benefit of such a service can be communicated clearly to the target market. An organizations promotional mix can consist of:

Penetration

Distribution/place:
is one of the four aspects of marketing. A distributor is the middleman between the manufacturer and retailer. After a product is manufactured by a supplier/factory, it is typically stored in the

Skimming

Competition

Psychological Product Line Bundle

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distributor's warehouse. The product is then sold to retailers or customers. The other three parts of the marketing mix are product management, pricing, and promotion.

Product Lifecycle
Introduction: As a new product much time will be spent by the organisation to create awareness of its presence amongst its target market. Profits are negative or low because of this reason. Growth: If consumers clearly feel that this product will benefit them in some way and they accept it, the organisation will see a period of rapid sales growth. Maturity Rapid sales growth cannot last forever. Sales slow down as the product sales reach peak as it has been accepted by most buyers. Decline. Sales and profits start to decline, the organisation may try to change their pricing strategy to stimulate growth, however the product will either have to be re-modified, or replaced within the market.

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Product mix
Brand Style Colour Design Product line Package Warranty service

Product line

Levels of product

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NEW PRODUCT DEVELOPMENT

1. Stage 1: Idea generation Within the company i.e. employees Competitors. Customers Distributors, Supplies and others. 2. 3. 4. 5. 6. 7. 8. Stage 2: Idea Screening Stage 3: Concept Development and Testing Stage 4: Marketing Strategy and Development Stage 5: Business Analysis Stage 6: Product Development Stage 7: Test Marketing Stage 8: Commercialization

BRANDING

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PACKAGING
INFORMATION CONVENIANCE MARKET AND BRAND APPEAL CONTAINMENT AND SAFETY PROTECTION AND PRESERVATION

LABELLING
A packaging ingredient used to : Distinguish a product Covance product information Legal required information Labeling is integral to packaging bulment increasing conform to regulation and ethical control Labeling should be informative truthful and distingtive.

GENERAL PRICING APPROCHES STRATEGIES

Penetration pricing: Skimming pricing:

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Competition pricing: Product Line Pricing: Bundle Pricing: Psychological pricing:

Premium pricing: Optional pricing:

General Pricing Approaches

Cost-Based Pricing
Cost-Plus Pricing This involves adding a standard mark-up to the cost of the product; it is simple to use and insures costs are covered, but has no relationship to what consumers are prepared to pay for the product

NEW PRODUCT PRICING POLICY

Penetration

Skimming Psychological Product Line Competition Bundle

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New-Product Pricing Strategies

Market-Skimming Pricing is done to skim the highest price off the top of what
people are willing to pay for a product

A Market Skimming pricing policy is often used for new technology products, where there will be people willing to pay a higher price to be the "first on the block" to own one. This policy can help a company overcome high technology cost

PUBLIC POLICY AND PRICING

Public Policy and Pricing

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PROMOTION AND PLACE MIX

Promotion mix components

Advertising Sales promotion Personal selling
Penetration

Psychological Product Line Competition Penetration Skimming Bundle

21 Public relation Direct mail sponsorship

Marketing communication

Integrated market communication

Publicity
Nationaldailynewspapers Sundaynewspapers Localandregionalnewspapers Consumermagazines Specialistmagazines

22 Tradeandprofessionalpress Internet Visual and aural media include: Television(terrestrialanddigital) Radio Cinema Billboards Transport Direct mailing

Advertising and public relations

promotion - public relations
Introduction The Institute of Public Relations defines public relations as follows: The planned and sustained effort to establish and maintain goodwill and mutual understanding between an organisation and its publics What is meant by the term publics in the above definition? A business may have many publics with which it needs to maintain good relations and build goodwill. For example, consider the relevant publics for a publicly-quoted business engaged in medical research: Employees Shareholders Trade unions Members of the general public Customers (past and present) Pressure groups The medical profession Charities funding medical research Professional research bodies and policy-forming organisations The media Government and politicians The role of public relations is to: Identify the relevant publics Influence the opinions of those publics by: o Reinforcing favourable opinions o Transforming perhaps neutral opinions into positive ones o Changing or neutralising hostile opinions Public relations techniques

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1. 2. 3. 4. 5. There are many techniques available to influence public opinion, some of which are more appropriate in certain circumstances than others: Consumer communication Business communication Internal / employee communication External corporate communication Financial communication

Personal selling
promotion - personal selling
Personal selling can be defined as follows: Personal selling is oral communication with potential buyers of a product with the intention of making a sale. The personal selling may focus initially on developing a relationship with the potential buyer, but will always ultimately end with an attempt to "close the sale"

Kotler describes six main activities of a sales force: (1) Prospecting - trying to find new customers (2) Communicating - with existing and potential customers about the product range (3) Selling - contact with the customer, answering questions and trying to close the sale (4) Servicing - providing support and service to the customer in the period up to delivery and also post-sale (5) Information gathering - obtaining information about the market to feedback into the marketing planning process

(6) Allocating - in times of product shortage, the sales force may have the power to decide how available stocks are allocated

Sales promotion
Promotion - sales promotion
An activity designed to boost the sales of a product or service. It may include an advertising campaign, increased PR activity, a free-sample campaign, offering free gifts or trading stamps, arranging demonstrations or exhibitions, setting up competitions with attractive prizes,

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temporary price reductions, door-to-door calling, telemarketing, personal letters on other methods. Sales promotion is commonly referred to as Below the Line promotion. The ultimate consumer (a pull strategy encouraging purchase) The distribution channel (a push strategy encouraging the channels to stock the product). This is usually known as selling into the trade Methods of sales promotion

Price promotions:- Price promotions are also commonly known as price discounting Coupons .Gift with purchase Competitions and prizes .Money refunds .Frequent user / loyalty incentives Point-of-sale displays

DIRECT MARKETING

promotion - direct marketing

The planned recording, analysis and tracking of customer behaviour to develop a relational marketing strategies Direct-response adverts on television and radio Mail order catalogues E-commerce (you bought this marketing companion following tutor2us direct marketing campaign!) Magazine inserts Direct mail (sometimes also referred to as junk mail) Telemarketing Direct mail The Direct market

Focus on the best prospective customers Cross-sell related products Launch new products to existing customers

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ONLINE MARKETING

LOGISTIC MANAGEMENT

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CHANNAL STRATEGY DECISSIONS

Channel length-direct or indirect. Choice of intermediary. Multiple or single channel. How to move the goods through the channel. The degree of market exposure. Control over the channel.

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Lesson-4 Rural Marketing

Indian rural marketing environment
To determine the occupational pattern. Income generation. Marketing arrangement for agricultural produce. Activities of rural and cottage industry. Attitude and belief Culture and sub-cultural influence. Religion Caste and other local factors.

Problems in developing marketing strategy

Depend on irrigation. Rural electrification. Problems of huge distance and inadequate outlets. Un even disposable income and uneven literacy. Under developed consumer and marketers. Low per capita income. Poor communication and literacy level. Large diversity in languages. Inadequate credit facilities. Lack of transport facility.

Rural marketing strategies

Product planning. Pricing strategy. Distribution strategy.

conventional media

28 Wall painting. Direct mail. Banners. Puppetry. Procession, tableaus, floats. Contest to promote the product. Audio visual vans. Stalls, boardings and audio visuals, publicity t local fairs. Point-of purchase channels. Demonstration and sampling at hats and fairs.

Non-conventional media
Messages on animals. Pricing, packing, a relative advantage. Rural consumer lends to retailer. Pop channels Audio, visual promotion. Video vans. Demonstration. Sampling to build brand preference. Audience response to TV commercial.

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CHAPTER-5 Marketing Information System Meaning of MIS

To understand the proper role of information systems one must examine what managers do and what information they need for decision making. We must also understand how decisions are made and what kinds of decision problems can be supported by formal information systems. One can then determine whether information systems will be valuable tools and how they should be designed.

Objectives
An understanding of the different roles managers play and how marketing information systems can support them in these roles An appreciation of the different types and levels of marketing decision making Knowledge of the major components of a marketing information system An awareness of the often under-utilized internal sources of information available to enterprises An ability to clearly distinguish between marketing research and marketing intelligence, and An understanding of the nature of analytical models within marketing information system.

Concept of MIS

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Marketing research
Market research is branch of MIS.it means actual and potential customers. Market research is the systematic intelligence investigation or study.

Marketing research process

Marketing intelligence system

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Components of MIS

Internal record system

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Decission support system