Top Careers & You™: Marketing

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Marketing Concepts
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Definitions of Marketing What is Marketing?

What is Marketing? What is the definition of Marketing? When you are studying marketing for the first time
these are the few basic questions may arise in you.
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.
American Marketing Association Marketing is the process of planning and executing the conception,
pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and
organizational objectives.
Philip Kotler defines marketing as Satisfying needs and wants through an exchange process.
The Chartered Institute of Marketing defines marketing as The management process responsible for
identifying, anticipating and satisfying customer requirements profitably.
Palmer Marketing is essentially about marshaling the resources of an organization so that they meet the
changing needs of the customer on whom the organization depends.
Bartles Marketing is the process whereby society, to supply its consumption needs, evolves distributive
systems composed of participants, who, interacting under constraintstechnical (economic) and ethical
(social)create the transactions or flows which resolve market separations and result in exchange and
consumption.
Evolution of Marketing Changes in Marketing
Exchange is the origin of marketing activity. When people need to exchange goods, they naturally begin a
marketing effort. It was known as barter system. The following table identifies five eras in the history of
marketing: the production era, the product era, the sales era, the marketing era and the relationship-marketing
era.
Era prevailing attitude and approach:
Production
Consumers favor products that are available and highly affordable.
Improve production and distribution.
Availability and affordability is what the customer wants consumers favor products that offer the superior
Sales
Consumers will buy products only if the company promotes/sells of these products.
Creative advertising and selling will overcome consumers resistance and convince them to buy.
Marketing
Focuses on needs/wants of target markets and delivering satisfaction better than competitors. The
consumer is the king! Find a need and fulfill it.
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Relationship Marketing
Focuses on needs/wants of target markets and delivering superior value. `Long-term relationships with
customers and other partners lead to success.
Types of Marketing Different Types of Marketing
We have earlier discussed what is marketing and the definition of Marketing. Now we will discuss about the
types of Marketing. There are several types of marketing are there.
Types of Marketing:
Viral Marketing: Viral Marketing is nothing but, Marketing by the word of the mouth, having a high pass-rate
from person to. The best example for this is Creating a buzz in the industry.
Drip Marketing: Drip Marketing is nothing but sending promotional items to Clients.
Guerilla Marketing: Guerilla Marketing is an Unconventional marketing intended to get maximum results from
minimal resources. (just remember Maximum results from Minimum resources)
Bench Marketing: The Bench Marketing is nothing but the comparison of the business processes with
competitors and improving prevailing ones.
Social Media Marketing: Marketing using online communities, social networks, blog marketing etc is called
the social media marketing. It provides a window to market a product or service on the Internet through
different social networks. Companies can use these outlets for their marketing, customer service and sales.
Direct Marketing: If the company directly reaches to the customers on a personal basis (ex : phone calls,
private mailings, etc) rather than traditional channel of advertising (like TV, Newspapers, etc) then that type of
marketing is called the Direct Marketing. Check Types of Direct Marketing.
Indirect Marketing: Distributing a particular product through a channel that includes one or more resellers is
called Indirect Marketing (simply we can say that telling about our product indirectly is known as Indirect
marketing).
Internet Marketing: Marketing of products or services over the Internet is called Internet Marketing. It is also
know as i-marketing, web-marketing, online-marketing, Search Engine Marketing (SEM) and e-Marketing.
Digital Marketing: The marketing which uses digital advertising is called digital marketing. Television, Radio,
Internet, mobile etc.
Outbound Marketing: Outbound marketing includes any marketing efforts that are taken to introduce a
product or service to someone who isnt looking for that product or service. Some examples are cold calling,
sending newsletters, billboards, and banner ads on different web sites.
Inbound Marketing: Inbound marketing focuses on having your company found by customers, as opposed to
reaching out to them directly like in outbound marketing. The important thing to remember here is that a
person starts out with the want/need to purchase a product or service, and they go out to find it.
Niche Marketing: When a product or service is not being readily supplied to a certain portion of a market, a
company can focus their efforts on that niche to address a need that isnt currently being addressed. This
targeted marketing is successful because the marketer has identified a need that isnt being resolved by
mainstream providers. Sometimes it is beneficial for a company to focus on a niche instead of trying to
compete in a larger market.
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Marketing Concepts
Direct Marketing Types of Direct Marketing

Direct Marketing: If the company directly reaches to the customers on a personal basis (ex : phone calls,
private mailings, etc) rather than traditional channel of advertising (like TV, Newspapers, etc) then that type of
marketing is called the Direct Marketing.
Types of Direct Marketing: There are number of types in direct marketing, we have discussed some of them
below.
Direct Mail Marketing: Advertising material sent directly to home and business addresses (This is the most
common form of direct marketing)
Telemarketing: It is the second most common form of direct marketing, in which marketers contact
consumers by phone.
Email Marketing: This type of marketing targets customers through their email accounts (you might have
observed them in your e mails too)
Difference between Direct Marketing and Indirect Marketing.
If the company directly reaches to the customers on a personal basis (ex : phone calls, private mailings, etc)
rather than traditional channel of advertising (like TV, Newspapers, etc) then that type of marketing is called
the Direct Marketing.
Distributing a particular product through a channel that includes one or more resellers is called Indirect
Marketing (like TV, Newspapers, etc).
When you receive a phone call from a call center and they are asking you to purchase their product is an
example of Direct Marketing.
Example of Indirect marketing is Katrina Kaif, as she markets LUX but she doesnt own that company. I.e.
producer doesnt sell the product directly to consumer.
Marketing Mix Definition, Marketing Mix 4ps, Marketing Mix 7ps
The marketing mix is a business tool used in marketing products. The marketing mix is often crucial when
determining a product or brands unique selling point (the unique quality that differentiates a product from its
competitors), and is often synonymous with the four Ps: price, product, promotion, and place; in recent times,
however, the four Ps have been expanded to the seven Ps or replaced by the four Cs.
The term marketing mix was first used in 1953 when Neil Borden, in his American Marketing Association
presidential address.
E. Jerome McCarthy introduced the 4 Ps of Marketing as a way to describe the mix of factors required to
successfully market a product.
The 4 Ps of Marketing are : (Basics of Any marketing process)
Product
Price
Promotion
Place (distribution)
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5 Ps of Marketing :
Product
Price
Promotion
Place (distribution) and
People
7 Ps of Marketing:
Product
Price
Place
Promotion
People
Process
Physical evidence
SWOT Analysis
Posted by Admin on May 20th, 2012 | No Comments
SWOT analysis (alternately SLOT analysis) is a strategic planning method used to evaluate the Strengths,
Weaknesses/Limitations, Opportunities, and Threats involved in a project or in a business venture. It involves
specifying the objective of the business venture or project and identifying the internal and external factors that
are favorable and unfavorable to achieve that objective.
The SWOT Analysis is the first stage of planning and helps marketers to focus on key issues. Strengths and
weaknesses are internal factors. Opportunities and threats are external factors.
Customer Relationship Management (CRM)
Customer Relationship Management (CRM) refers to the methodologies and tools that help businesses
manage customer relationships in an organized way. Customer relationship management (CRM) is a widely
implemented model for managing a companys interactions with customers, clients, and sales prospects. It
involves using technology to organize, automate, and synchronize business processesprincipally sales
activities, but also those for marketing, customer service, and technical support. The overall goals are to find,
attract, and win new clients; nurture and retain those the company already has; entice former clients back into
the fold; and reduce the costs of marketing and client service
In short CRM In order to sell my product, I should maintain good Customer Relations. I mean I should
interact with customers and know their needs and according to that I have to design my product. The CRM
concerns the relationship between the organization and its customers (to learn more about customers needs
and behaviors in order to develop stronger relationships with them).
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Three Levels of a Product Marketing

The concept of three levels of a product actually comes in play when you are finalizing a product for your
business or when you want to analyze a product. Just like any business, a product too has its hierarchy. A
product can be divided into a series of different features and benefits which helps in its segmentation targeting
and positioning. Thus the three levels of the products are the ones which help to define the product in a better
manner.
These three levels are:
Core product Its the intangible benefit provided by a product
Actual product Its the tangible and physical benefit of a product.
Augmented product Its the extra add on,value or service one gets out purchasing a product.
Market Research Definition of Market Research

Market Research- Market research is any organized effort to gather information about markets or customers.
It is a very important component of business strategy. Marketing research is concerned specifically about
marketing processes, while market research is concerned specifically with markets. I mean, to discover what
customers want, need, or believe (and of-course, how the Act). Once you came to know all the details then
you can easily get an idea on how to market your product.
Market Segmentation What is Market Segmentation
Market Segmentation is nothing but dividing the market into Parts. Into different homogeneous groups of
consumers. The purpose of this is to allow your marketing program to focus on the subset of prospects that
are most likely to purchase your offering. If done properly this will help to insure the highest return for your
marketing expenditures.
Example of Market Segmentation
Gender
Price
Interests
Location
Religion
Income
Size of Household
Age
Education
Occupation
Social Class
Ethnicity
Nationality
End use (Example work or leisure)
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Abbreviations for Marketing Popular Marketing Abbreviations

Here are some important and popular abbreviations for the Marketing segments. These may helpful to you for
Bank Exams. Especially to crack SBI Clerical and SBI PO Exams.
IDRA Industries Development and Regulation Act.
IPO Initial Public Offering.
SMB Small Medium Business
SME Small and medium enterprise
VALS Values Attitude and Life-Styles
LOHAS Lifestyles of Health and Sustainability
LOVOS Lifestyle of voluntary simplicity
SAM Segmented Addressable Market
VLE Very Large Enterprise
BPO Business Process Outsourcing
Comms Communications Sector
DIY Do It Yourself market
FMCG Fast Moving Consumer Goods
FSS Financial Services Sector
ICT Information & Communication Technology
RPO Recruitment Process Outsourcing
ATM Automated Teller Machine.
BEP Break Even Point.
BPO Business Process Outsourcing.
CRM Customer Relationship Management.
CNP Cardholder Not Present.
EOQ Economic Order quality.
FDR Fixed Deposit Receipts.
GDP Gross Domestic Product.
HNI High Networth Individual.
M& A Mergers & Acquisitions.
MR Marginal Revenue.
NPA Non Performing Assets.
PAN Permanent Account Number.
PIN Personal Identification Number.
SEO Search Engine Optimization.
SEBI Securities Exchange Board of India.
ROA Return on Assets.
VAT Value Added Tax.
DINKY Double income no kids
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SOHO Small Office, Home Office
VSB Very Small Business
AMSO-Association of Market Survey Organisations
arr Arrange, Arrival, Arrived, Arrivals
ASSC - Accounting Standards Steering Committee
AYCCA - All You Can Afford
B of T Board of Trade
B/E Bill of Exchange
B/E Bill of Entry
B/L Bill of Lading
A&P Advertising and promotions
AAU Attitude, awareness and usage study
ACA Adaptive conjoint analysis
ADI Area of dominant influence.
ADSL Advanced digital subscriber line
AIDA Attention, Interest, Desire, and Action
AIDCA Awareness, Interest, Desire, Conviction,Action
ANOVA Analysis of variance
ARF Advertising Research Foundation
ASC - Advertising Standards Council
ASCII - American standard code of information interchange
ATC - Average total cost.
B2B - Business to business
B2C - Business to consumer
BDI - Brand development index
BEP - Break even point.
CAGR - Compound annual growth rate
CAPI - Computer assisted personal interviewing
CASI - Computer-aided self-administered interviewing
CATI - Computer assisted telephone interviewing
CAWI - Computer aided web interviewing
CIF - Cost, insurance and freight.
CIM - Chartered Institute of Marketing
CPA - Critical path analysis.
CPC - Cost per click
CPI - Consumer price index
CPM - Cost per thousand
CPP - Cost per rating point
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CPT - Cost per thousand
CRM - Customer relationship management /marketing
DAGMAR - Defining advertising goals for measured advertising results
Dink - Dual income no kids
DK - Dont know
DMA - Designated marketing area.
DPI - Disposable personal income.
DSS - Decision support system.
eCRM - Electronic customer relationship marketing
EDI - Electronic data interchange
EEC - European Economic Community.
EEG - Electroencephalogram
EFTPOS - Electronic funds transfer at point of sale.
ENP - Expected net profit.
EPOS - Electronic point of sale (data)
FABS - Features and benefits selling.
FAQ - Frequently asked questions
FIS - Free in store.
FMCG - Fast moving consumer goods
FOC - Front of counter
Four Ps - Product, price, promotion and place.
FTP - File transfer protocol
GIF - Graphics interchange format
GNP - Gross national product
GRPS - Gross rating points
GSM - Global system for mobile communications
GSR - Galvanic skin response
KISS - Keep it simple and straightforward
KPI - Key performance indicators
KIPs - Key Influence People.
PAPI - Paper and pencil interviewing
PDA - Personal digital assistant
PDF - Portable document format
PDM - Product differentiated marketing.
PERT - Program Evaluation and Review Technique
PIN - Personal identification number
PLC - Product life cycle
PoP - Point of purchase.
Marketing Concepts
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PR - Public relations
R&D - Research and development.
ROAM - Return on assets managed.
ROI - Return on investment.
RTS - Ready to serve
SAQ - Self-administered questionnaire
SBU - Strategic business unit
SEG - Socio-economic-group
SIC - Standard industrial classification
SKU - Stock keeping Unit.
SMTO - Simple mail transfer protocol
SOV - Share of voice
SQL - Structured query language
STM - Simulated test market
SWOT - Strengths, weaknesses, opportunities and threats.
TARPS - Target audience rating points.
TCP - Transmission control protocol
TVRs - Television ratings
Marketing Concepts
Marketing Notes
Marketing Management
Management: set of activities to help an organization realizes a stated goal by maximizing limited resources.
Marketing management: administering the process of satisfying consumer needs while ensuring the company
makes a profit.
Aim of marketing:
Make new customers by highlighting the potential value of a good
Retain old customers meeting and surpassing customers expectations
Satisfied customer brings 80% of the revenue. He does word of mouth

Need, desire and demand
Need: basic things
Desire: variation in things
Demand: desire backed by money
Market Segmentation: taking a population and dividing it into small groups according to set of shared
characteristics.
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Market Research: is the planned, systematic collection and analysis of data used by managers to make a
decision.
Target Market: the segment the firm decides to market their product to is known as target mkt.
8 types of demand
Negative demand
No demand
Latent demand
Declining demand
Irregular demand
Full demand
Overfull demand
Unwholesome demand
Marketing Myopia
When marketers lose sight of what is driving the consumers purchasing decision: satisfying their needs.
Marketing Myopia starts when a firm starts to market a product not a solution to a need. They pay more
attention to a product as a standalone object instead of highlighting the benefits and experiences a product
offers to an object.
Societal Marketing: marketing for the long term goals.
Strategic planning: process of developing and maintaining a plan of action that coordinates the activities of
every business unit to ensure the long term goals of an organization are fulfilled.
Strategic plan: it states companys goals and explains the sequence of events in how they will achieve their
objectives.
Mission Statement: explains in general terms the organizations goals and their purpose.
3 characteristics of mission statement:
1.
Limited number of goals
2.
Explain the polices and values of the firm
3.
Which market the company is targeting
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11
To understand your business environment, we have to study porter 5 force model
Barriers to entry
Degree of Rivalry
Power of Supplier
Power of Buyer
Threat of substitute
Strategic Business Unit (SBU): develops strategies tailored to fit their resources and capabilities to fulfill the
overall corporate objective outlined by senior management.
Core Competencies: is a task or skill or people that enables a company to have an advantage over their
competitors.
Characteristics of core competencies:
Hard to copy
Opens access to wide variety of market
Increases customer benefits
Sustained Competitive advantage: core competencies that endure over a long period of time
BCG Approach: assess the performance of SBUs according to their relative market share and growth rate.
Star: growing rapidly
Cash Cow: could be milked to finance the growth
Dog: SBUS to divest
Question Mark: have potential being turned into star but they require development through finance.
Product: it is a bundle of physical, psychological and experiential benefits that the customer receives that
satisfies one or many wants or needs.
Product-line length: number of products sold in one category
Product-line width: number of different categories
Product-line depth: different packaging sizes
Inventory Turnover: the no. of times the stock of the company is replaced. High value means the product is
selling fast.
ROI = return on investment.
Product level Strategy
Product Filling: same product with different size, shape, quality or price to capture the consumer surplus by
customizing the offering to different buyers with the same needs and wants. Vendors bargaining power
increases coz retailer shelves are full of his product. Entry for new players become difficult.
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12
But we aware of self-cannibalization, it means reducing your product market share because of entry of many
products by the same producer.
Line Stretching: lengthening the product line by offering products to potential customers residing upstream
and downstream.
Product line Pruning: trimming of product line due to increased cost or cannibalization
PLACEMENT:
Market Channel: marketing channel is a group of interdependent organizations involved in the process of
production and distribution of a good or service.
Developing a right market channel to reach the target market is crucial to the success of a product.
The distribution system becomes a source of competitive advantage because the seller has privileged access
to their target market.
Channel level: number of intermediary between the producer and the consumer i.e., 1, 2,3
Vertical marketing channel and horizontal marketing channel.

Hybrid marketing channel:
BUILDING A MARKET CHANNEL
Setting channel goals and type
Identifying Partners
Intensive distribution
Extensive distribution
Selective distribution
Designing international market channel
Channel management decision
Coercive Power
Reward power
Legitimate power
Expert power
Referent power
Evaluating Partners
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13
PRICE
Setting market objectives
Maximize short term profit
Maximize current market share
Market skimming riding down the demand curve
Product-quality leadership
Survival
Determining demand
Past history to predict the future
Price experiments
Market Survey
Estimating Cost
Variable cost
Fixed cost
Total cost
ABC (activity based cost accounting)
Customer Pyramid
Platinum
Gold
Iron
Lead
Try to convert lead into iron, by saving cost on lead, or by generating more revenue out of lead. Platinum
customers are lost easily because when they retire, they become zero from hero.
Learning Curve: more often a task is performed the less cost will be incurred in future. With this, we can sell
at lower price, spend more on brand differentiation or simply earn more profit.
Analyze the competitors cost, price and offers to position the product
By making a scorecard consisting of competitors price, cost, and offers.

Selecting a price method
Mark up price: adding a mark up over cost of producing one unit. Calculation is below
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14
Unit cost = variable cost + (fixed cost/expected sales)

Mark up price = unit cost /(1-expected rate of return)
Target return pricing: setting a price that yields an expected return on investment.
TRP = unit cost + [(opportunity cost)*(fixed cost)]/unit sales
Break even volume = Fixed cost/(price variable cost)used to cover operating cost
Perceived-value pricing: depends upon the perception of the customer
Value pricing: keep the price low of commonly known goods and earn on other goods.
Going-rate pricing: same rate as the competitor
Psychological Pricing: $99Price Discrimination: different price for different consumers.
Geographical Pricing: charge more to places which are further from the plant.
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Banking and Marketing Awareness

Top Careers & You

Definitions of Marketing What is Marketing?

Consumers favor products that are available and highly affordable.

Improve production and distribution.

Top Careers & You

Banking and Marketing Awareness

Top Careers & You

Banking and Marketing Awareness

Direct Marketing Types of Direct Marketing

Top Careers & You

Banking and Marketing Awareness

Place (distribution) and

Top Careers & You

Banking and Marketing Awareness

Three Levels of a Product Marketing

Core product Its the intangible benefit provided by a product

Actual product Its the tangible and physical benefit of a product.

Market Research Definition of Market Research

End use (Example work or leisure)

Top Careers & You

Banking and Marketing Awareness

Abbreviations for Marketing Popular Marketing Abbreviations

IDRA Industries Development and Regulation Act.

IPO Initial Public Offering.

SMB Small Medium Business

SME Small and medium enterprise

VALS Values Attitude and Life-Styles

LOHAS Lifestyles of Health and Sustainability

LOVOS Lifestyle of voluntary simplicity

SAM Segmented Addressable Market

VLE Very Large Enterprise

BPO Business Process Outsourcing

Comms Communications Sector

DIY Do It Yourself market

FMCG Fast Moving Consumer Goods

FSS Financial Services Sector

ICT Information & Communication Technology

RPO Recruitment Process Outsourcing

ATM Automated Teller Machine.

BEP Break Even Point.

BPO Business Process Outsourcing.

CRM Customer Relationship Management.

CNP Cardholder Not Present.

EOQ Economic Order quality.

FDR Fixed Deposit Receipts.

GDP Gross Domestic Product.

HNI High Networth Individual.

M& A Mergers & Acquisitions.

NPA Non Performing Assets.

PAN Permanent Account Number.

PIN Personal Identification Number.

SEO Search Engine Optimization.

SEBI Securities Exchange Board of India.

ROA Return on Assets.

VAT Value Added Tax.

DINKY Double income no kids

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SOHO Small Office, Home Office

VSB Very Small Business

AMSO-Association of Market Survey Organisations

arr Arrange, Arrival, Arrived, Arrivals