Session contents

• Basic concepts
• Strategic views
• Tactical views
• Consumer behaviour basics
• Other frameworks used in marketing
programs
• “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
 Business orientations

Production concept Product concept

Selling concept Marketing concept

 Demand
• Demand of particular product is willingness of
customer or anyone to purchase per unit of
time at a particular time.
• Demand = ( Desire to buy + Willingness
+Purchasing power )
• Individual demand : single customer demand
• Market demand = Sum( All individual potential
customers demand)
Customer Potential Customer

One who is using your product One who is not using your
product ,but there is a fair
chance of using it in future
Available market Potential market

Demand from existing market Aggregate of all individuals and

with buyers or potential firms in a particular market who
customers have some interest in your
product
Customer
-Who buys the product or
service
-She/he spends the money
- So marketers focus will be on
customer
Personal
Consumer( Consumer
markets): Buys goods or
services for own or family
consumption.
Consumer
-Who uses the product or
service
-She/he does not spend any
money( if he is not customer)
- She/he may influence
customer ( because of
experience with the product or
service)
Organizational
Consumer( Business markets):
Profit, non-profit, government
agencies, institutional
(Schools, hospitals, and
prisons), all of which buy
products ,equipment, and
services in order to run their
businesses
• Customer Value is the perception of what a
product or service is worth to a Customer
versus the possible alternatives. Worth means
whether the Customer feels s/he or he got
benefits and services over what s/he paid.

• Customer Value is Benefits-Cost (CV=B-C).

Benefits
- Quality,service,brand name, experience ..etc can be grouped into
1.Functional benefits : Product attributes to address functional utility
2.Emotional
3.Self expressive /Social

Costs
- Time
- Money
- Energy and Efforts
• To create real value, you must recognize what a Customer perceives as
value.

• You must understand how the Customer views your competition’s

product.

• What is important to the Customer in his buying decision?

• Is price more important or are benefits?

• Are you good at delivering what the Customer believes is important?

• Are you able to deliver more than your competition on these factors?

Source :Mr.Gautam Mahajan, Customer Value Foundation

 Market insights
• A fact about that market that has not
previously been made use of.
• The attempt to discover a penetrating truth
about consumers, their aspirations and
motivations.
• Should be credible & actionable.

*Source : DJS Research

 How do we get insights : From inside or
outside
Inside Data ( Micro level)------------------------Results data

Intelligence -----------------------------Happening data

Outside (Macro level)

• Customers
• Competitors
• Major forces
– Demographics (population, age mix, education,gender,household patterns,..etc.)
– Economic(Income distribution, Savings..etc.)
– Social and Cultural
– Natural environment
– Technical environment
– Political & Legal
 Marketing research
- Is the function that links the consumer, customer,
public to the marketer through information –
information used to identify and define
marketing opportunities and problems

- It specifies the information needed to address

the issues

- Is all about generating marketing insights

 Marketing research process

1.Defining objectives
2.Develop research plan ( Sources , approaches,
instruments, sampling, & contact methods)
3.Collect information
4.Analyse the information
5.Findings
5.Action