Marketing- The action or business of promoting and selling products or services.

Market placePhysical, such as store; Market space: Digital, Such as internet.Metamarket: describe Products and services closely related in the minds of consumers, but spread across diverse set of industries. Core Marketing Concepts: Needs, Wants and Demands Positioning Segmentation Value Addition Supply chain Competition Marketing Concept-Not to find consumers for our products, but find right products for the consumer 4ps-Product, Price, Place, Promotion

4PS vs. 4 Cs
Consumer wants and needs (vs. Products) Cost to satisfy (vs. Price), Convenience to buy (vs. Place), Communication (vs. Promotion)
4 Cs n SIVA are frm buyr pt of view wher as 4ps r frm sellers perspective

Value Delivery Process: Choose the value-->provide the value-->Communicate the value Marketing plan : Central instrument directing n coordinating marketing effort Strategic marketing=Target Markets+Value Proposition, Tactical marketing= Promotion+pricing+service+Ads etc. MIS-People, Equipment and procedures to evaluate information for the need of marketing decision makers Customer-Perceiver Value-difference between what customer gets (benefits) for what he/she gives (costs)

Total Customer Benefit-monetary value of the benefits from a purchase Total Customer Cost-Costs incurred from purchase to disposal of a product Value proposition-Whole cluster of benefits a company promises to deliver/summarizes why a consumer should buy a product or use a service Profitable Customer-A person ,house hold company that over yilds a revenue stream exceeds the cost stream by a substantial amount on a particular customer Customer Lifetime Value (CLV)-present value of the stream of future profits expected over customers purchases Lifestyle-A persons pattern of living as expressed in activities Freuds theory: Psychological forces shaping peoples behavior are largely unconscious. A person cannot fully understand his/her motivations. Maslows theory: People are driven by particular needs in particular times. They are physiological, safety, social, esteem & self-actualization Herzbergs Theory: Two-factor theory, Dissatisfiers and satisfiers. The absence of dissatisfiers is not enough o motivate a purchase; satisfiers must be present. Learning-Changes in behavior through experiences Hedonic bias-attribute success to oneself and failure to others Consumer buying decision Process1) Problem Recognition 2) Information Search, 3) Evaluating alternatives 4) Purchase decision 5) Post-purchase behavior Hierarchy of attributes that guide consumer decision making-Market partitioning Categorizing and Evaluating final outcomes of choices-Mental Accounting Group of customers sharing a similar set of needs and wants-Market Segment Individual marketing=Customized marketing Levels of market segmentation

Segment marketing, niche, Local, Individual Bases for segmenting Geographical, Demographic (Age, gender, income, class), Psychographic (traits, lifestyle, personality), behavioral (occasions, benefits, user status, usage rate) Brand: A name/sign/symbol used to differentiate ones product from competitors Branding: Endowing products and services in the name of the brand Brand Equity: Added value endowed (Established) on products and services Positioning-Act of designing the companys offering and image to occupy distinct place in mind of target Market. Category Membership-Product with which a brand competes and they function as close substitutes Points-of-difference-Benefits a consumer strongly associates with a brand and believe it cant be found in the same brand. Points-of-Parity-Associations not necessarily unique to a brand, but can be shared with other brands Category points of parity (Travel Agency); competitive points of parity (savlon vs Dettol) PLC: Introductory, growth, maturity, decline Performance Quality: The level at which products primary characteristics operate. Product system: Group of diverse but related items that are compatible with each other Product Mix/Product Assortment: Set of all products and items that a particular seller offers for sale. Line stretching: When a company extends its product line beyond its current range. Line filling: Adding products to the product line with in the same range Pricing that maximizes profit on the total mix-Product-Mix pricing Different types of product-mix pricing: Product line, Optional Feature, Two-Part, By-product, Product Bundling Ingredient Branding: Brand Equity for materials that are necessarily contained within other branded products. (Westin hotels-Heavenly bed, Heavenly shower) Packaging: All activities of designing and producing the container for a product/enclosing or protecting products for distribution, storage, sale, and use Labeling-Tagging of a product for identification

Reference Prices: Observed price compared to a price seen somewhere else ABC Costing: identifies activities in an organization and assigns the cost of each activity according to the actual consumption by each Learning Curve/Experience Curve: The decline in average cost with accumulated production. Target Costing: It is a cost management tool for reducing the overall cost of a product over its entire lifecycle with the help of production, engineering, research and design. Different Pricing Methods: Mark-Up Pricing, Target return pricing, Perceived-value Pricing, Value Pricing, Going rate, Auction pricing Setting the price: Selecting the pricing objective, Determining Demand, Estimating Costs, Analysing competitors costs and prices, selecting pricing method, selecting final price. Demand Chain Planning: Think about the target market and strategize supply chain backward from that point. SIVA: Solution, Information, Value and Access Zero level channel=direct marketing channel=manufacturer to consumer Vertical marketing System (VMS)-comprise producer, wholesaler and retailer acting as unified system. Channel captain owns others or franchises them. HMS: Two unrelated companies come together to exploit an emerging opportunity Multi channel marketing: one company, 2 channels for one or two market segments Integrated marketing channel system: using same strategies and tactics for selling in different channel Retailing: Selling goods and services to final consumers for personal, non-business use. Wholesaling: Selling goods and services to those who buy for resale or business use Direct product profitability (DPP): Measure products handling costs from warehouse till it reaches consumer (buys a product) Marketing Communications: Means by which firms remind consumers of their products/brands Developing Effective Communications: Identify target audience, Determining objectives ,Design Communications ,Select channels , Establish budget, Decide on Media Mix, measure results, Manage IMC Advertising: form of communication used to persuade consumers to buy a product/offering. WE=R*F*I

WE=Weighted number of exposures R=Reach F=Frequency I=Impact Public Relations: Variey of programs to promote/protect companys image/products Sales Promotion: Incentive tools (mainly short term) to promote greater purchase by consumers Designing sales force: Sales force objectives, strategy, structure, size, compensation Managing sales force: Recruiting, training, supervising, motivating, evaluating Conjoint analysis: a method for deriving utility values that consumers attach to different levels of product attributes. Quality function deployment: converting CAs (Customer attributes) to Engineering attributes (EAs) Adoption: Individuals decision to become a regular user of a product Negative, declining, irregular, full, overfull, unwholesome Non-existent demand: People are unaware or uninterested in the product Latent demand: strong demand that cannot be satisfied by existing product. Reactive market orientation: Understanding and meeting customers expressed needs Holistic Marketing: Everything Matters (development, design, implementation of various activities) Internal Marketing, integrated, performance, relationship Relationship Marketing: Mutually satisfying long-term relationships Value chain: tool to identify ways to create more customer value Marketing Plan: Directing and co-ordinating marketing effort Customer Satisfaction: measure of how products and services supplied by a company meet or surpass customer expectation. Customer profitability Analysis: ABC costing Platinum, gold, iron, lead

Touch point: Any occasion in which a customer encounters brand and product Opinion leader: person offering informal advice about specific product or product category Brand Personality: Specific human traits that we attribute to a particular brand. Factors influencing consumer behavior: Social (Reference groups), Cultural, Personal Perception: process by which we select, organize and interpret information to get a meaningful picture Expectancy-Value model: consumers evaluate the products on their beliefs Risks in buying: functional, physical, financial, psychological Elaboration-likelihood model: Evaluations in both low and high involvement circumstances Buying Center: it involves a group of employees, family members, or members of any type of organization responsible for finalizing major decisions, usually involving a purchase. Initiators, users, influencers, deciders, approvers, buyers, gatekeepers Supplier Search: Spot Markets, Barter markets, Vertical Markets, Auction sites Blanket contract/stockless purchase plans: Supplier promises to resupply the buyer as needed Flexible market offering: Naked solution (elements all segment members value) and Discretionary options As close as possible to individual customers: Grassroots Marketing Conversion model: users Non-users convertible, shallow, average, entrenched Strongly unavailable, weakly unavailable, ambivalent, average

Selecting market segments: Single-segment, selective specialization, market specialization, product specialization, Full market coverage Mega marketing: Different skills used to gain the co-operation of number of parties to enter or operate in a given market Brand Promise: Brand promise is what a particular brand stands for (and has stood for in the past). It has its roots from the identity that it gains over a period of time Differentiation Strategies: Image, personnel, channel Five product levels: Core benefit, Basic product, expected product, augmented product, potential product Consumer goods classification: Convenience, shopping, specialty, unsought.

Co-branding: Same-company, multi sponsor, joint venture, Retail Adapting the price: Barter, compensation deal, buy back arrangement, offset Promotional pricing: Loss leader pricing, rebates, special-event pricing, low interest financing, longer payment terms, warranties, psychological discounting. Price cuts: low quality trap, shallow pocket trap, fragile market share, price-war trap Price increases: reducing discounts, unbundling, escalator clauses, delayed quotation pricing Buyers fall into four categories: Habitual shoppers, high value deal seekers, variety loving shoppers, high-involvement shoppers Selling a physical product needs 3 channels: sales, delivery and service Three types of distribution: Exclusive (limited number of intermediaries), Selective (in between), intensive Efficient consumer response: demand side management, supply side, enablers and integrators Types of conflict: Vertical, horizontal, multi-channel Managing conflict: Co-optation, mediation, diplomacy, arbitration Non-store retailing: Direct selling, direct marketing, vending machines, buying service Services Mix: Pre-purchase, post-purchase, ancillary Market logistics: physical flow of goods from point of origin to point of use Integrated logistics system: Material management, physical distribution aided by IT Warehousing: Storage, distribution, automated Bottleneck (high risk, low opp.), critical, commodities, nuisance Pg 451 Marketing Communications Mix: Ads, sales promotion, personal selling, direct marketing, WOM, PR Marketing communication models: Macro, Micro (AIDA, hierarchy of effects, innovation-adoption, communication) Hierarchy of effects: category need, brand awareness, brand attitude, brand purchase intention Communication Channels: personal (Advocate, expert, social), non-personal

Marketing communications budget: Percentage of sales, affordable, objective and task, competitive parity Types of Advertising: Informative, persuasive, reminder, reinforcement Advertising problems: Macro scheduling (ads in relation to season) and micro scheduling (ad expenditure with in a short period of time to gain maximum impact) Pulsing: continuous ads at low-weight levels but with heavier activity (Evaluating ads effectiveness) Copy-testing: test whether the ad is communicating effectively Portfolio tests: many ads and subsequent recall Go Error: When company permits a poor idea; DROP Error: when the company dismisses a good idea Stages in Adoption process: Awareness, interest, evaluation, trial, adoption Innovation diffusion process: spread of new idea from source to its ultimate use Product differentiation: Form, Feature, Performance, conformance, customization, durability, reliability, reparability. Service differentiation: ordering ease, Delivery, installation, repair, returns Decision heuristics and biases: availability, representative, anchoring and adjustment Non-compensatory models: Conjunctive, lexicographic, elimination-by-aspect Porters generic strategies- overall cost leadership, differentiation, focus Database marketing is a form of direct marketing using databases of customers or potential customers to generate personalized communications in order to promote a product or service for marketing purposes. The method of communication can be any addressable medium, as in direct marketing.

cannibalization refers to a reduction in sales volume, sales revenue, or market share of one product as a result of the introduction of a new product by the same producer