Basics in

Marketing
 Amey Athawale
 Lavin D’cunha
 Hardik Doshi
Palak Sood
MMS II, Jamnalal Bajaj Institute of Management Studies
July 25th, 2008
 Marketing
• Marketing is an organizational function and a set
of processes for creating, communicating, and
delivering Value to customers and for managing
customer relationships in ways that benefits the
organization and its stakeholders

• Meeting needs profitably

• Marketing is the art & science of choosing target

markets and getting, keeping and growing
customers through creating, delivering &
communicating superior customer value
 Product Life-cycle

Analyze each and every stage and find the proper

Marketing Mix for all the stages
 Product Life-cycle
• Product development - sales are zero, investment costs
are high
• Introduction - profits do not exist, heavy expense of
product introduction
• Growth - rapid market acceptance and increasing profits

• Maturity - slowdown in sales growth. Profits level-off

• Decline - sales fall-off and profits drop

• Withdrawal - no more present

 SWOT Analysis
STRENGTHS WEAKNESSES
Internal Factors Internal Factors

OPPORTUNITIES THREATS
External Factors External Factors
 Segmentation

Geographic
Region, City or Metro
Size, Density, Climate
Demographic
Age, Gender, Family size
and Fife cycle, Race,
Occupation, or Income ...

Psychographic
Lifestyle or Personality

Behavioral
Occasions, Benefits,
Uses, or Attitudes
 Targeting
• Undifferentiated

Company Entire Market

 Targeting
• Differentiated

Segment 1

Company Segment 2

Segment 3
 Targeting
• Concentrated

Segment 1

Company Segment 2

Segment 3
 Positioning
• Competitive Promise

• Position itself within the target segment

• How the organization wants their consumers to see

(perceive) their product

• Positioning depends on the competitors positioning

• Perceptual Mapping: Quality v/s Price Graph

 Positioning Strategies
• Product Attributes: What are the specific product attributes?

• Benefits: What are the benefits to the customers?

• Usage Occasions: When / how can the product be used?

• Users: Identify a class of users

• Against a Competitor: Positioned directly against a competitor

• Away from a Competitor: Positioned away from competitor

• Product Classes: Compared to different classes of products

 The Four P’s Vs. The Four Cs

Marketing
Mix

Place
Product

Convenience
Customer
Solution Price Promotion

Cost Communication
 Marketing Mix- Product
• Marketing is not about providing products or
services it is essentially about providing
changing benefits to the changing needs and
demands of the customer
• Product Quality, Design, Features, Branding,
Functionality, Support ,Warranty
Three Product Levels
 Product Mix

Width
Width-- number
numberof
of
different
differentproduct
product
lines
lines
Consistency

Length
Length --total
total Product
ProductMix
Mix--
number
numberofof brands
brands all
allthe
theproduct
product
within
withinthe
thelines
lines lines
linesoffered
offered

Depth
Depth-- number
number of
of
versions
versionsof
of each
each
brand
brand
 Brand Strategies

Product Category
Existing New
Brand Name

Existing
Line Brand
Extension Extension

New
Multibrands New
Brands
 Marketing Mix- Price

Penetration

Skimming

Pricing Strategies Competition

Loss leader

Bundle

Psychological
Four Introductory Marketing Strategies

Promotion
High Low

Rapid-
Rapid- Slow-
Slow-
High skimming
skimming skimming
skimming
strategy
strategy strategy
strategy
Price
Rapid-
Rapid- Slow-
Slow-
Low penetration
penetration penetration
penetration
strategy
strategy strategy
strategy
 Marketing Mix- Place
• Intensive Distribution
• Selective Distribution
• Exclusive Distribution
How a Distributor Reduces
The Number of Channel Transactions

1
B. Number of contacts
4 with a distributor
MxC=3+3=6
Store
2 5

6
3

= Manufacturer = Customer = Distributor

Why are Wholesalers Used?

Management
Management Selling
Sellingand
and
Services
Services &&Advice
Advice Promoting
Promoting

Market
Market Buying
Buyingand
and
Information
Information Wholesaler Assortment
AssortmentBuilding
Building
Functions
Risk
Risk Bearing
Bearing Bulk
BulkBreaking
Breaking

Financing
Financing Warehousing
Warehousing

Transporting
Transporting
Marketing Mix- Promotions

Advertising

Public
Relations

Sales
Promotional Mix Promotion

Personal
Selling

Direct
Mail

Internet/
E-commerce
 Push Versus Pull Strategy

Marketing Marketing
activities Interme- activities
Producer diaries End users

Demand Push Strategy

Marketing activities

Demand Interme- Demand

Producer diaries End users

Pull Strategy
Channels of Sales Promotions

MANUFACTURER

Trade
Push
Promotions

RETAILER Consumer
Promotions
Retail Pull
Push
Promotions

CONSUMER
 Consumer Promotion
Consumer-Promotion Consumer-Promotion Tools
Objectives

Entice
EnticeConsumers
Consumersto to
Try Samples Advertising
Advertising
TryaaNew
NewProduct
Product Samples
Specialties
Lure Specialties
LureCustomers
CustomersAway
Away Coupons
Coupons Patronage
From Patronage
FromCompetitors’
Competitors’Products
Products Patronage
Rewards
Get Rewards
Rewards
GetConsumers
Consumersto to“Load
“LoadUp’
Up’ Cash
CashRefunds
Refunds
on a Mature Product
on a Mature Product Contests
Contests
Hold
Hold&&Reward
Reward Loyal Price
Customers
Loyal PricePacks
Packs Sweepstakes
Customers Sweepstakes
Consumer
ConsumerRelationship
Relationship
Building Premiums
Premiums Games
Games
Building
Point-of-Purchase
Point-of-Purchase
Displays
Displays
 Trade Promotions
Trade-Promotion
Trade-Promotion Tools
Objectives
Persuade
PersuadeRetailers
Retailersor
or Price-Offs Premiums
Price-Offs Premiums
Wholesalers
Wholesalersto
toCarry
CarryaaBrand
Brand
Give Allowances
Allowances Patronage
Patronage
Displays
GiveaaBrand
BrandShelf
ShelfSpace
Space Rewards
Rewards
Promote
PromoteaaBrand
Brandin
in Buy-Back
Buy-Back
Advertising Guarantees Discounts
Discounts
Advertising Guarantees
Push Push
PushMoney
Money
PushaaBrand
Brandto
toConsumers
Consumers Free
FreeGoods
Goods
Specialty
Specialty
Advertising
Advertising
Contests
Contests Items
Items
 Service Marketing
Intangibility
Intangibility Inseparability
Inseparability
Servicescannot
Services cannot Servicescannot
cannot
beseen,
be seen,tasted,
tasted, Services
felt,heard,
heard,or
or beseparated
be separated
felt, fromtheir
from their
smelledbefore
smelled before providers
purchase
purchase providers

Services
Services

Variability
Variability Perishability
Perishability
Qualityof
Quality of Servicescannot
cannot
servicesdepends
services depends Services
onwho
whoprovides
provides bestored
be storedfor
for
on latersale
later saleor
oruse
use
themand
them andwhen,
when,
where,and
where, andhowhow
 Service Marketing
• Marketing Mix – 7 P’s
–4 P’s
• Product, Price, Place, Promotion
–People
–Process
–Physical Evidence
 The BCG Growth Share Matrix

High
Stars Question marks
5
4 2 1
Market 6
growth 3
rate 10%
(in Cash cows Dogs
constant
7 11 12
8
dollars)
9 10 13

Low
10 1 0.1
Relative market share
Source: Adapted from Barry Hedley, “Strategy and the Business Portfolio,” Long Range Planning 10 (February 1977).
 Cash Flows Across Businesses
in the BCG Portfolio Model
Growth rate (cash use)

Stars Question
High
marks

Cash
Flows

Low Dogs
Cash cows

High Low
Relative market share

Desired direction of business development

 Intensive Growth Strategies:
Ansoff’s Product/Market Expansion Grid
Current products New products
Market penetration strategies Product development
• Increase market share strategies
markets
Current

• Increase product usage • Product improvements

Increase frequency of use • Product-line extensions
Increase quantity used • New products for same
New applications market

Market development Diversification strategies

strategies • Vertical integration
markets

• Expand markets for existing Forward/backward integration

New

products • Diversification into related bus

Geographic expansion (concentric diversification)
Target new segments • Diversification into unrelated
businesses (conglomerate
diversification)
 Five Forces Determining
Segment Structural Attractiveness

Potential Entrants
(Threat of
Mobility)

Suppliers Industry Buyers

(Supplier power) Competitors (Buyer power)
(Segment rivalry)

Substitutes
(Threats of
substitutes)
 New Product Development

Concept Development
Idea Generation Idea Screening
and Testing

Marketing Strategy
& Development Business Analysis Product Development

Test Marketing Commercialisation

 Marketing Plan
Executive Summary

SMART Objectives Tactics

------------------------- - Marketing Mix
Segmentation,
SWOT Positioning, Targeting
-Marketing Tools
& Models

Evaluation
THANK YOU

Questions???