Académique Documents
Professionnel Documents
Culture Documents
Subject :-
Faculty :-
Prof. M. Yaseen Khan
ALL PROGRESS IS BORN OF INQUIRY.
DOUBT IS OFTEN BETTER THAN OVER-
CONFIDENCE, FOR IT LEADS TO INQUIRY
AND INQUIRY LEADS TO INVENTION.
Marketing Today
The course aims at making students understand
concepts, philosophies, process and techniques of
managing the marketing operations of a firm.
PEDAGOGY
MAJOR ASSIGNMENT
LIVE PROJECT
– 10 OTW & 6 Contact Hrs.
MINOR ASSIGNMENTS
-04 OTW & 4 Contact Hrs.
CASE STUDY (04)
– 04 OTW & 04 Contact Hrs
CLASS ROOM LECTURES
- 36Hrs
MAGZINES
1. Pitch
2. Marketing Mastermind-ICFAI
3. USP-Age
JOURNALS
1. Journal of Marketing-American Marketing Association
2. HBR
3. Indian Journal of Marketing
NEWSPAPERS
1. Business Line
2. Business Standard
Marketing Concept and Philosophy
At its very core are the customer and his or her satisfaction. The
marketing concept and philosophy states that the organization should
strive to satisfy its customers' wants and needs while meeting the
organization's goals. In simple terms, "the customer is king".
It is not something that the marketing department administers, nor
is it the sole domain of the marketing department. Rather, it is
adopted by the entire organization.
Wal-Mart's motto of "satisfaction guaranteed" is an example of the
marketing concept.
PRODUCT PHILOSOPHY
The Industrial Revolution
The product philosophy holds that the organization knows its product better than
anyone or any organization.
The company knows what will work in designing and producing the product and
what will not work.
This confidence in their ability is not a radical concept, but the confidence leads
to the consumer being overlooked.
This philosophy of only relying on the organization's skill and desires for the
still operates using the product philosophy. The
gunsmiths produce single-shot rifles using the
technology available during the 1700s. They are only
able to produce about four or five rifles every year,
and they charge from $15,000 to $20,000 for each
rifle. However, the high price does not deter the
demand for the guns; their uniqueness commands a
waiting list of three to four years. Today's
Williamsburg Gunsmith Shop situation was typical for
organizations operating before the Industrial
Revolution. Most goods were in such short supply that
companies could sell all that they made.
Consequently, organizations did not need to consult
with consumers about designing and producing their
products.
When mass production techniques created the Industrial
Revolution, the volume of output was greatly increased. Yet the
increased production of goods did not immediately eliminate the
shortages from the pre-industrial era.
SELLING PHILOSOPHY
The selling era has the shortest period of dominance around
1930 and stayed in widespread use until about 1950.
The selling philosophy holds that an organization can sell any
product it produces with the use of marketing techniques, such
as advertising and personal selling. It assumes that a well-trained
and motivated sales force can sell any product.
Organizations could create marketing departments that would be
concerned with selling the goods, and the rest of the
organization could be left to concentrate on producing the goods.
The reason for the emergence of the selling philosophy was the
ever-rising number of goods available after the Industrial
Revolution.
Organizations became progressively more efficient in production,
which increased the volume of goods.
With the increased supply, competition also entered production.
The selling philosophy also enabled part of the organization to
keep focusing on the product, via the product philosophy. In
addition, the selling philosophy held that a sales or marketing
department could sell whatever the company produced.
MARKETING PHILOSOPHY
However, more companies began to realize that it is
easier to sell a product that the customer wants, than
to sell a product the customer does not want. When
many companies began to realize this fact, the selling
era gave way to the marketing era of the marketing
concept and philosophy.
The marketing era started to dominate around 1950, and it
continues to the present.
The marketing concept recognizes that the company's
knowledge and skill in designing products may not always be
meeting the needs of customers.
It also recognizes that even a good sales department cannot
sell every product that does not meet consumers' needs.
When customers have many choices, they will choose the one
that best meets their needs.
The marketing concept and philosophy states that the
organization should strive to satisfy its customers' wants
and needs while meeting the organization's goals. The
best way to meet the organization's goals is also by
meeting customer needs and wants.
The marketing concept's emphasis is to understand the
customers before designing and producing a product for
them. With the customer's wants and needs incorporated
into the design and manufacture of the product, sales and
profit goals are far more likely to be met.
The idea of keeping close to the organization's customers
seems simple. In reality, it is very easy to forget the
customer's needs and wants. Sometimes the
management is so involved with the product that their
own desires and wants begin to take dominance, even
though they have adopted the marketing concept.
For example:-
Many years ago—before there was a Subway on every corner—a
college student opened a small submarine sandwich shop near his
university's campus. The sub shop was an immediate success. By
using the marketing concept, the young entrepreneur had
recognized an unmet need in the student population and opened a
business that met that need.
Unfortunately, the story does not end at this point. The sub shop
was so successful that it began to outgrow its original location after
about three years. The shop moved to a larger location with more
parking spaces, also near the university. At the new sub shop,
waiters in tuxedos met the students and seated them at tables with
tablecloths. Besides the traditional subs, the shop now served full
meals and had a bar. Within a few months the sub shop was out of
business. The owner of the shop had become so involved with his
business vision that he forgot the customers' needs and wants. They
did not want an upscale restaurant—there were other restaurants in
the area that met that need, they just wanted a quick sub sandwich.
By losing sight of the customers' wants and needs, the owner of the
sub shop lost his successful business.
How Marketing Evolves
Marketing Marketing
Barter Production Sales
Dept. Era Co. Era
Era Era Era
Supply Supply
One- Demand Supply
Exceeds Exceeds
on-One Exceeds Equals
Demand Demand
Trading Supply Demand
Marketing Integrated
a Sub- Role for
sidiary Marketing
Function
Marketing Process
Good Marketing is No
Accident
Business successsuccess
The roaring is not determined by producer but by
customers.
of four-wheeler Tata
Ace, in a market
earlier dominated by
three-wheeler load
carriers, was due to a
deep understanding
of the market needs
and customer
requirements.
What is Marketing?
Marketing is an organizational function and a set of
processes for creating, communicating, and delivering
alue to customers and for managing customer relation
ships in ways that benefit the organization and its
stakeholders.
-AMA-2
S R
exchange process
Definition of Marketing
Anticipation of Demand requires a firm to do
consumer research in anticipation of market’s
potential and consumers’ desires.
Management of Demand includes:
Stimulation: motivates consumers to want firm’s
offerings
Facilitation: makes it easy to buy offerings
Regulation: involves balancing inventory to
consumer demand
Definition of Marketing
Satisfaction of Demand involves product availability,
product performance, perceptions of safety, and
after-sale services.
An Exchange Process includes the agreement for
payment: cash/credit/promise to pay or support for a
firm, institution, idea, or place.
What is Marketed?
Goods
Goods
Services
Services
Events
Events &
& Experiences
Experiences
Persons
Persons
Places
Places &
& Properties
Properties
Organizations
Organizations
Information
Information
Ideas
Ideas
Demand States
Declining Irregular
Final
Manufacturer Consumer Organizational
or Service Consumer
Provider
Basic
Marketing
Performers
Marketing
Wholesaler Specialist
Retailer
The Marketing
Concept
Goal
Consumer
Orientation
Orientation
Marketing
Concept
Market-Driven Integrated
Approach Marketing
Focus
Value-Based
Philosophy
Contrast in Marketing/Selling
Philosophies
Focus of Selling
Philosophy
Feedback
Selling Philosophy
Courteous Employees
Good Value Competitive Pricing
MARKETING MANAGEMENT
PROCESS
Analyzing Market Structure and Behaviour
(3)
(1) Consumers
Organization’ Competition
Controllable Factors
s Level of B Suppliers & Distributors
Success or
Government
By Top Management A Failure in
Reaching Its Economy
Objectives Technology
(5)
By Marketing Adaptation Independent Media
(4) Feedback
AIMT:
Faculty, Administration and staff, Parents of students, High
School Teachers, Current students, alumni, prospective
students, mass media, general public, local community,
Government Agencies, Foundations and Trusts that provide
scholarships, Business Community including industry,
suppliers, competitors, Board members or trustees.
Technological: Technologies for nations, for Products and for business Model
Social / Cultural: Values, Time-Starved Customers, Multiple Lifestyles, the
changing structure of family.
Political / Legal: Political Structure, Stability, Govt. Interventions, Attitudes
towards the business, foreign policy. Ex. KFC, Wal-Mart, IPL etc.
Political / Legal:
Political Structure, Stability, Govt. Interventions,
Attitudes towards the business, foreign policy. Ex.
KFC, Wal-Mart, IPL etc.
Marketing
Environment of
India
The Two Indias and The Many
Indias
The two Indias
The Present
A trillion dollar economy: India’s GDP crosses $ 1 trillion in FY 07
Per capita income rises to Rs 29,382 per year
The fourth largest economy in the world and heading to be the third
Also the second fastest growing
Set to stay on a reasonably high growth trajectory
India’s Consumer Environment
India’s Markets
Second largest market in the world.
Fastest growing market in passenger cars, cell phones, travel and tourism, DVDs, dig-
cams, and laptops, among other things.
The size of India’s consumer market was around US$ 383 million in 2003-04.
India’s Consumer Environment
FMCG and FMCD Sectors
FMCD Spurt: mobile sets/ACs/Twowheelers/passenger cars
etc.
• Steady growth due to rising consumer income and falling
prices.
Call of the Mall : The Retail Boom
India’s retail industry expected to hit $ 255 billion in 2010
According to a CII Report, the year 2010 will see a 10 per
cent contribution by modern retail to all FMCG.
In metros, this figure is expected to be 30 per cent.
Market: a collection of buyers and sellers who transact over a particular product or
product class.
Marketplace: Physical entity
Market space: Digital entity
Metamarket: a cluster of complementary products and services that are closely
related in the minds of consumers, but spread across a diverse set of industries.
ASK YOURSELF-
Are we in the health service market or smokers’ clinic or maternity home or
children’s nursing home?
Are we a technology institute or a general educational institute (problem facing
IIT’s)?
Second Step –
Market Segmentation- dividing the market into fairly
homogenous parts where any part may conceivably be
selected as market target to be reached with a distinct
marketing mix.
Typical segmentation variables are as follows:
Geographic – Region, State, Country, Rural / Urban,
Climate
Demographic – Age, Sex, Family size, Family life cycle,
Income, Occupation, Education, Religion,
Caste, Race, Nationality, Social Class
Psychographic – Life style, Personality, Benefits sought,
User status, Usage rate, Loyalty status, Readiness stage.
LEVELS OF MARKET SEGMENTATION
Mass Marketing
Seller engage in mass-production, distribution and promotion-
of one product.
Advantages-
a) Largest potential market
b) Lowest cost– lower price---higher margin
Disadvantages-
a) Difficult to reach Splintering Market
b) Proliferation of advertising and
distribution
Ford’s Model T Followed a Mass Market
Approach
Four levels of Micromarketing
Segments Niches
Flexible Market Offering- not everyone in the segment wants exactly the
same product.
Naked Solution- the product and service elements that all segment members
value.
Discretionary Option- That some segment members value, each option might
carry additional charges.
Segment Marketing Whole Market
Segment
Market
Naked
Solution
Flexible
Market
Offerings
Discretiona
ry Options
Preference
Segments
Homogeneous preferences exist when
consumers want the same things
Diffused preferences exist when consumers
want very different things
Clustered preferences reveal natural
segments from groups with shared
preferences
Bank Al
Habib
targets
senior
citizens
Dove Targets Women
Niche Marketing
More narrowly defined customer group seeking a distinctive
mix of benefits. It is dividing segment into sub-segment.
Yellow Pages
‘In-City’ courier
Bharat Matrimony
Individual Marketing
Substantial
Substantial
Accessible
Accessible
Differentiable
Differentiable
Actionable
Actionable
Patterns of
Target Market Selection
Patterns of
Target Market Selection
Patterns of
Target Market Selection
The
Revolution
brand of
ready-made
women’s
apparel
successfully
focuses on the
niche
Segment-by-Segment Invasion Plan
Pepsi used Megamarketing in
India
EXAMPLES
TITAN – Successful Segmentation and Targeting
After carrying out an in-depth market study, Titan
identified three distinct market segments for its
watches. The segments were arrived at using
benefit and income level as the bases.
a) The first consisted of the high income / elite
consumers who were buying a watch as a fashion
accessory not as a mere instrument showing time.
They were also willing to buy a watch on impulse.
The price tag did not matter to this segment.
b) The next segment consisted of consumers who
preferred some fashion in their watches but to
them price did matter. While they had the capacity
to pay the price required for a good watch, they
would not purchase a watch without comparing
various offers in the market.
c) The third segment consisted of the lower-income
consumers who saw a watch mainly as a time-
For the first segment, Titan offered Aurum and Royale
in the gold/ jewellery watch range. They were stylish
dress watches in all gold and precious metals. The
prices ranged between Rs.20,000 and Rs. 1 lakh.
Strategic Tactical
Target marketing Product features
decisions Promotion
Value proposition Merchandising
Analysis of marketing Pricing
opportunities Sales channels
Service
The Strategic Planning,
Implementation,
and Control Processes
Corporate Headquarters’
Planning Activities
Define the corporate mission
Establish strategic business units (SBUs)
Assign resources to each SBU
Assess growth opportunities
Good Mission Statements
Focus
Focus on
on limited
limited number
number of
of goals
goals
Stress
Stress major
major policies
policies and
and values
values
Define
Define major
major competitive
competitive spheres
spheres
Take
Take aa long-term
long-term view
view
Short,
Short, memorable,
memorable, meaningful
meaningful
Major Competitive Spheres
Industry
Geographical Products
Vertical
channels Competence
Market
segment
Infosys Technologies Limited