&

Needs- NEEDS, WANTS &

Food/ Shelter/ Clothing DESIRES
Needs Basic human needs
Food, Shelter, Clothing

Wants Needs targeted to

specific products

Desires Strong wants

HOW TO GET SOMETHING ?

Beg Steal

Borrow Self-
production
EXCHANGE
Process of
planning and executing the
Conception, Pricing, Promotion & Distribution of
ideas, goods & services to
create exchanges that
satisfy individual & organisational goals
 Starting Focus Means Ends
Point

SELLING Factory Products Selling & Profits thro’

Promoting sales
volumes

MARKETING Target Customer Integrated Profits thro’

narket needs marketing customer
satisfaction
Goods Places Outer space

Services Properties Water, Ocean bed…

Experiences Organisations

Events Information GOD

Persons Ideas
SIMPLE MARKETING SYSTEM
Products/Services

Industry Market
(Collection (Collection
of sellers) of buyers)

Money

INFORMATION
 MODERN MARKETING SYSTEM

COMPANY

Marketing
SUPPLIERS Intermediaries
END
USER

COMPETITORS
 Variety
Quality
PRODUCT Design
Sizes Features
Labelling Brand name
Legal requirements Services
Product protection PRICE

List price
MARKETING Discounts
PACKAGING
MIX Allowances
Payments
Credit terms

Channels
Advertisement Coverage PLACE
Sales Promotion PROMOTION Assortments
Personal Selling Location
Public relations Inventory
Direct marketing Transport
 DEMAND
Willingness backed by the ability to buy

Negative demand Customer dislike the product

Nonexistent “” Unawareness/uninterested
Latent “” Strong unsatisfied need
Declining “” Less frequent purchase
Irregular “” Seasonal, Timely demand
Full “” Adequate purchase
Overfull “” Demand from more consumers
Unwholesome “” Undesirable social consequences
Market A physical place where buyers
& sellers gathered to buy/sell goods.

Marketplace Physical

Marketspace Digital / Virtual - Internet

Metamarket Cluster of complementary products

and services that are closely related
in the minds of the consumer but
are spread across a diverse set of
industries – Automobile metamarket
PRODUCTION
PRODUCT
SELLING
MARKETING
SOCIETAL
MARKETING

HOLISTIC
MARKETING
PRODUCTION ORIENTATION
Produce as much of a product as possible –
Profits through large quantities

PRODUCT ORIENTATION
Produce the best quality product –
Profit through very good / world class quality

SELLING ORIENTATION
Consumers by themselves would not buy
a product – it needs to be aggressively sold
MARKETING ORIENTATION
Marketing becomes the central focus
of the entire organisation – all functions/
department of an organisation work
towards customers satisfaction

SOCIETAL MARKETING
Organisations owe their existence to
Society – hence, they have an obligation
to society – accountable to employees,
Consumers, public, shareholders,
environment and world at large –
Green Marketing, Disaster Management …
Societal marketing initiatives
Corporate social marketing – behaviour change
campaigns – Immunization ..
Cause marketing – Sponsorships, advertising
Cause-related marketing – % of revenue to
charities, donations etc.
Corporate philanthropy – Gifts of money, time ...
Corporate community involvement – volunteer
services
Socially responsible business practices -
Environment protection, animal rights …

HOLISTIC MARKETING
A concept based on the development, design and
implementation of marketing programs,
processes and activities that recognizes
their breadth and interdependencies.
 Communications
INTEGRATED Products
MARKETING Channels

Marketing dept.
Senior Management
Other depatments

INTERNAL HOLISTIC RELATIONSHIP

MARKETING MARKETING MARKETING

Customers
Channels
Partners
Ethics
SOCIALLY
Environmental
Legal RESPONSIBLE
Community MARKETING
 CUSTOMERS
Top
Frontline
People
Middle
Management
Middle
Management
Frontline
People
Top
CUSTOMERS

Traditional Modern
organisational customer-oriented
chart organisation chart
Consumer

Business

Global

Non-profit

Government
 CUSTOMER

Value Value

COMPANY COST COMPANY II

Value - Price a customer is willing to pay for an offering.

Profit = Total value – Total cost

COMPETITION
Rivalry for the same resources
Traditional physical process sequence
Make the product Design product / Procure / Make
Sell the product Price, Sell, Promote, Distribute, Service

Value creation and delivery sequence

Choose the value Customer segmentation
Market selection / focus
Value positioning

Provide the value Product/ Service development

Pricing, Sourcing, Making, Distributing
Servicing

Communicate the Sales force, sales promotion

Value and advertising
 INFRASTRUCTURE

HUMAN RESOURCE MGT.

RGIN
MA
TECHNOLOGY DEVELOPMENT

PROCUREMENT

IN
RG
MA
Inbound Operations Outbound Marketing Service
Logistics Logistics & Sales
 MARKETING
FUNCTIONS

Supporting
Activities
Merchandising
activities

Physical
Distribution
activities
 Product Planning & Development
Standardisation & Grading
Buying & Assembly

Personal selling
Advertising
Sales promotion
SELLING Branding
Packaging/ labelling
Customer service
ASS
TRANSPORT

STORAGE
 Market risk bearing
Insurance
Market finance Sales Forecasting
Product differentiation

Consumer credit
Market Information
& Market Research
 YOU

SURROUNDINGS
 MACRO
P E S T
MICRO
PUBLIC NATURAL
SUPPLIERS

LEGAL COMPANY COMPETITION

DEMOGRAPHIC
MARKETING
CONSUMERS INTERMEDIARIES

ENVIRONMENTALISM
INTERNATIONAL CONSUMERISM
SOCIAL RESPONSIBILITY
 STRATEGIC
PLANNING
PROCESS

PLANNING IMPLEMENTATION CONTROL

Corporate Measure results

Business Organising Diagnose results
Division Implementing Corrective action
Product
Executive Summary & Table of Contents

Situation analysis

Marketing strategy

Financial projections

Implementation controls
Executive Summary Brief summary of goals &
recommendations

Situation analysis Market summary

SWOT analysis
Competition
Product offering
Keys to success

Marketing strategy Mission

Marketing objectives
Financial objectives
Target markets
Positioning, Strategies
Marketing mix
Market research
Financials Break-even analysis
Sales forecast
Expense forecast

Controls Implementation schedule

Marketing organisation
Contingency planning
 People, Equipment and
Procedures to gather, sort,
analyze, evaluate and
distribute information to
marketing decision makers
 Assess
Marketing info. Marketing
Mgt needs environs
Analysis Development
Planning of info.
Implement Distribute
Control information

Marketing decision
& communication
 IRS

MKIS

MRS

MDSS
 INTERNAL RECORDS SYSTEM

• Order to payment cycle

• Sales Information systems
• Databases
• Data warehousing
• Data mining

Databases – Organized collection of comprehensive

information about customers / prospects.

Data warehousing – Process of capture, organization

and storage of current data.

Data mining – Extracting useful information about

individuals, trends and segments from mass of data.
 Research
type

Contact Sampling
methods Methods
MARKET
RESEARCH
SYSTEM

Instruments
Approaches

Data
sources
 DEMAND FORECASTING

ADVANCED
STATISTICAL MATHEMATICAL
MODELS MODELS
Regression analysis Queuing theory
Discriminant analysis Game theory
Cluster analysis Math. Programming
Factor analysis Heuristics
Conjoint analysis New product –
M-D scaling pre-test models

COMPUTER BASED MODELS

 LOCAL
MARKETING
INDIVIDUAL
MARKETING

NICHE
MARKETING

SEGMENT
MASS
MARKETING
MARKETING
 SEGMENTATION, TARGETING &
POSITIONING

Segment A group of customers who share a

similar set of needs and wants.

Targeting Deciding how many and which

segments to target.

Positioning Investigating the hierarchy of

attributes consumers examine
in choosing a brand
 SEGMENTATION

Segmentation variables

Geographic Local, Regional, National, Global

Demographic Age, Gender, Family size, Income,

Occupation, Religion, Race, Nationality

Psychographic Use of Psychology & Demographics

Behavioural Use of knowledge, attitude & response

to a product.
 High resources
PSYCHOGRAPHIC SEGMENTATION VALS NETWORK High innovation
Innovators

PRIMARY MOTIVATION SELF-

IDEALS ACHIEVEMENT EXPRESSION

Thinkers Achievers Experiencers

Believers Strivers Makers

Survivors
Low resources
Low innovation
 TARGET
BEHAVIOURAL MARKET
SEGMENTATION

Unaware Aware

Not
Tried
tried

Negative Positive Not yet

Neutral Rejector Repeated
opinion opinion repeated

Loyal
to other Switcher Loyal
brands To brand

Light Regular Heavy

User user user
 TARGETING

Single segment Selective Product

concentration specialisation specialisation

Market Full market

specialisation coverage
 POSITIONING

FACTORS/ Price
ATTRIBUTES Type
Quality
Brand
Service
Durability
 CONSUMER
PSYCHOLOGY
Motivation
Perception
Learning
Memory
BUYING PURCHASE
PROCESS DECISIONS
MARKETING OTHER
Problem
STIMULI STIMULI
recognition Product choice
Info.search Brand
Product Political
Evaluation of Dealer
Price Economic
alternatives Purchase amount
Place Social
Purchase decision Purchase timing
Promotion Technology
CONSUMER Post-purchase Payment method
CHARACTERISTICS behaviour
Cultural
Social
Personal