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BASICS of Marketing

BASICS of Marketing. Team NJM njm@nmims.org September 6, 2010. Define Marketing.

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BASICS of Marketing

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  1. BASICS ofMarketing Team NJM njm@nmims.org September 6, 2010

  2. 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

  3. 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

  4. SELLING V/S MARKETING SELLING MARKETING PRODUCT AGGRESSIVE SELLING & PROMOTION PROFITS THROUGH SALES VOLUME CUSTOMER NEEDS SUPERFLUOUS SELLING PROFITABILITY THROUGH CUSTOMER SATISFACTION STARTING POINT MEANS ENDS

  5. What can be sold • Services • Events • Experiences • Persons • Places • Properties • Organizations • Information • Ideas

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

  7. 4 Ps

  8. 4 Ps & 4 Cs

  9. 7 Ps • 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 • PhysicalEvidence: The ability and environment in which the service is delivered.

  10. Selecting the Media

  11. One Way Two Way Low Customization HIgh

  12. 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

  13. Web as a medium cannot be ignored. • Hyper Impulsivity: Due to closer conjunction of Desire, Transaction and Payment. • Event Marketing/Sponsorships • Cause Marketing

  14. Unconventional Media Packaging Customer service POP Novel Media Events, Trade shows Advertising specialties Sponsorships

  15. 6 M’s for Communication Planning: • Market • Mission • Message • Media • Money • Measurement

  16. 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 defined 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 company’s offering and image to occupy a distinctive place in the target market’s mind

  17. The STDP Process

  18. Segmentation

  19. Product Life Cycle

  20. 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 flow; the company must still spend to keep up with the high market growth and fight off competition. • Cash cow: produces a lot of cash for the company (due to economies of scale and higher profit margins), paying the company’s bills and supporting its other businesses • Dogs: generate low profits or even losses

  21. GE Investment Priority System Business Unit Position Low Medium High High Industry Attractiveness Medium Low

  22. Porter’s Five Forces Model of Competition Rivalry Among Competing Firms in Industry Threat of New Entrants Threat of New Entrants Bargaining Power of Suppliers Bargaining Power of Buyers Threat of Substitute Products

  23. 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.

  24. Product Mix Same Brand Name New Brand Name Same Product Category New Product Category

  25. Ansoff’s Model

  26. 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

  27. Brand Strategy • Line extensions: existing brand name extended to new sizes or flavours 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

  28. Distribution

  29. Channel Partners/Intermediaries • Merchants: wholesalers and retailers—buy, take title to, and resell the merchandise. • Agents: brokers, manufacturers’ representatives and sales agents—search for customers and may negotiate on the producer’s behalf but do not take title to the goods • Facilitators: transportation companies, independent warehouses, banks, and advertising agencies—assist in the distribution process but neither take title to goods nor negotiate purchases or sales

  30. 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

  31. 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

  32. 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

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

  34. Q&A There's more than one answer to these questions… 

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