NEED, WANT, AND DEMAND

Needs are basic human requirements – food, clothing, shelter, electricity, transportation, etc.
Human needs have been evolving over the years. For example, food has been one of the most
basic
needs of human beings. But fast-paced lifestyles have created a need for ready-to-eat food
products.
There are various levels of needs, best explained by Abraham Maslow through the Hierarchy of
Needs (covered later in this course)
Wants are needs that get shaped due to culture and individual personality. A desire for a specific
means to satisfy one’s need is what differentiates a need and a want.
For example, you are thirsty and you need water to quench the thirst. But if you find yourself
asking
for a Bisleri bottle at restaurants when the waiter asks - “Mineral water or Regular water?”,
that’s a
want right there.
When wants are backed by buying power, demand is created. People want to choose products
that
provide the most value and satisfaction for their money. A desire, without the buying capacity,
will
not be converted into a demand.
Business to business marketing (B2B):
B2B refers to when companies deal with institutions rather than individuals. For example, Intel
& Microsoft doing business with Computer manufacturers like Dell, HP.

Business to consumer marketing (B2C):

B2C describes businesses whose customers are individual consumers, rather than professional
buyers. Therefore, all of the business' marketing is dedicated to the needs, interests, and
challenges of people in their everyday lives. B2C business includes goods and services such as
food, clothes, cars, houses, phone services, credit repair services, and so on.
SEGMENTATION, TARGETING, AND POSITIONING

The process of defining and subdividing a large homogenous market into clearly identifiable
segments having similar needs, wants, or demand characteristics. Its objective is to design a
marketing mix that precisely matches the expectations of customers in the targeted segment.

Four basic factors that affect market segmentation are: IMAA

1. Clear identification of the segment
2. Measurability of its effective size
3. Its accessibility through promotional efforts
4. Its appropriateness to the policies and resources of the company

After you are done segmenting the market, your task is to choose a segment that you would want
to target, based on profitability, volume, future potential, etc. This process is known as targeting.
Say for the above example of toothpaste, Close-up has a target segment that shows the following
traits in particular:
Geographic - Urban and semi-urban areas Demographic - Mostly youths in their teenage life
stage
Psychographic - Outgoing, social
Behavioral - Freshness and clear breath (for social interactions)
Bases for Targeting:
1. Market size – Sustainability
2. Expected growth – Future potential
3. Competitive position – Attractiveness
4. Cost of reaching the segment – Accessibility
5. Compatibility with the organization’s objectives & resources

Positioning is developing a product and brand image in the minds of consumers. It can also
include improving a customer's perception of the experience they will have if they choose to
purchase your product or service.
ATL AND BTL MARKETING

ATL Marketing’ stands for ‘Above The Line Marketing ‘. This kind of marketing is the kind
of marketing that has a very broad reach and is largely untargeted. Think about a national TV
campaign

BTL Marketing’ stands for ‘Below The Line Marketing ‘. This kind of marketing is the kind
of marketing that targets specific groups of people with focus. For example, a leaflet-drop in a
specific area, a Google AdWords campaign targeting a certain group or a direct telemarketing
campaign targeting specific businesses.

The 4A Framework

Acceptability, Affordability, Accessibility, and Awareness.

What is a brand?
(Some Punch lines for your GD/Interview)
“Brand is the personality of the organization”
“What a company makes is a product; what you buy is the brand”

Positioning – Act of designing a company’s offering and image to occupy a distinctive place in
the minds of the target market – it’s about where you rank in your customers’ minds about your
competition.
Branding, on the other hand, is building the personality of the product, service or company. The
goal is to elicit a positive rational or emotional response from the market. Branding comes from
your customers’ experiences with your business. You build strong associations (logo, jingle,
taglines, color, etc.) and thoughts in the mind of target audiences.
Product Life Cycle:
BCG Matrix:
Red & Blue Ocean Strategy

The Red Ocean is usually considered as a market structure which is highly saturated,
competitive, with lots of players and one where there’s very little room for growth

The BLUE Ocean on the other hand is market structure which is known to be new and open,
where there’s no or very little competition or players, and there exists a large room for growth.

Digital Marketing:

Digital Marketing is the practice of promoting products and services using digital channels to
reach consumers in a personal and cost-effective manner
Pay-Per-Click:
PPC stands for pay-per-click, a model of internet marketing in which advertisers pay a fee each
time one of their ads is clicked.

Cost Per Click (CPC) refers to the actual price you pay for each click in your pay-per-click
(PPC) marketing campaigns.

Search-Engine Marketing (SEM):

A phrase sometimes used in contrast with “SEO” to describe paid search activities, SEM may
also more 50 generally refer to the broad range of search- marketing activities, either paid or
organic. The sponsored ads that you see when you search something on google are a part of
Google’s SEM, using Google AdWords

Search-Engine Optimization (SEO):

The process of using website analysis and copy/design/structural adjustments to ensure both the
highest possible positioning on desired search engine results pages and the best experience for a
given site’s users. This enables websites to appear on the top of the search results

Points to Note:
SEM uses PAID strategies to appear in search; SEO uses ORGANIC strategies to appear in
search

Affiliate Marketing:
Suppose someone buys a product through your affiliate link (link that you posted on your
channels), you can then get a commission based on your business conditions with the owner of
the product that just got sold

Content Marketing:
Content marketing is a technique of creating and allocating valuable, relevant and consistent
content to attract and eventually convert your target audience to be your customers. Eg:
Scoopwhoop, Running podcasts in Gaana, spotify Etc.

Email Marketing:
Email marketing is when you send a commercial email message to your ‘subscribers’. Email
subscribers are contacts who have signed up to your email list and given permission to receive
communications from you.
Market Development – Trying to sell more of the same things to different people. Can be done
by using different geographical market, different sales channel or a different target segment. For
example, OnePlus getting into partnership with Reliance Retail to create a better physical
presence and target a wider consumer base.

2. Diversification – Selling completely different products to different customers. Example –

Reliance Jio

3. Market Penetration – Increase market share by penetrating deeper into an existing market
with the existing product. The Telecom industry is again a good example of such a strategy,
where companies are trying to increase their customer base by expanding their network and
offering friendly packages.

4. Product Development – Introducing a new product in the existing market. Example OnePlus
6T after OnePlus 6.
Distribution models:

Why Indirect Channel though?

India’s population = 1.35 billion (Assuming all of them wish to live and so they buy essentials)
Major Companies producing goods = Let us assume somewhere around 1000
Problem: It is impossible in this non-MARVEL universe for these 1000 companies to cater to
the mass
population on its own.
Solution: Indirect distribution channel. By leveraging the reach of various intermediaries (Like
1000s of
Distributors reaching Lakhs of Retailers and these Retailers catering to crores of Consumers)