Teaching Plan

Subject :-

Faculty :-
Prof. M. Yaseen Khan
 ALL PROGRESS IS BORN OF INQUIRY. DOUBT IS OFTEN
BETTER THAN OVER-CONFIDENCE, FOR IT LEADS TO
INQUIRY AND INQUIRY LEADS TO INVENTION.

Marketing Today
The course aims at making students understanding
the concepts, philosophies, process, techniques
and principles of Advertising and to develop an
understanding of the Brand concept and the
operational aspects of managing a brand.
 PEDAGOGY
MAJOR ASSIGNMENT

LIVE PROJECT
–4 OTW & 2 Contact Hrs.
MINOR ASSIGNMENTS
- 2 OTW & 1 Contact Hrs.
CASE STUDY (02)
– 04 OTW & 04 Contact Hrs
CLASS ROOM LECTURES
- 32 Hrs

Total Class Room Total Assignment/ Total OTW

Lectures Presentation Hrs
31 6 14
 Marketing Concept and Philosophy
At its very core are the customer and his or her satisfaction. The marketing
concept and philosophy states that the organization should strive to satisfy its
customers' wants and needs while meeting the organization's goals. In simple terms,
"the customer is king".
It is not something that the marketing department administers, nor is it the sole
domain of the marketing department. Rather, it is adopted by the entire
organization.
Wal-Mart's motto of "satisfaction guaranteed" is an example of the marketing
concept.

EVOLUTION OF THE MARKETING CONCEPT AND PHILOSOPHY

Three major philosophies of marketing- are the product, selling, and marketing
philosophies.

PRODUCT PHILOSOPHY
The Industrial Revolution
The product philosophy holds that the organization knows its product better than
anyone or any organization.
The company knows what will work in designing and producing the product and
what will not work.
This confidence in their ability is not a radical concept, but the confidence leads
to the consumer being overlooked.
This philosophy of only relying on the organization's skill and desires for the
 Today, the gunsmith shop in Williamsburg, Virginia, still
operates using the product philosophy. The gunsmiths
produce single-shot rifles using the technology available
during the 1700s. They are only able to produce about four or
five rifles every year, and they charge from $15,000 to $20,000
for each rifle. However, the high price does not deter the
demand for the guns; their uniqueness commands a waiting
list of three to four years. Today's Williamsburg Gunsmith
Shop situation was typical for organizations operating before
the Industrial Revolution. Most goods were in such short
supply that companies could sell all that they made.
Consequently, organizations did not need to consult with
consumers about designing and producing their products.

When mass production techniques created the Industrial Revolution,

the volume of output was greatly increased. Yet the increased
production of goods did not immediately eliminate the shortages
from the pre-industrial era.
 SELLING PHILOSOPHY

• The selling era has the shortest period of dominance around 1930 and
stayed in widespread use until about 1950.
• The selling philosophy holds that an organization can sell any product
it produces with the use of marketing techniques, such as advertising
and personal selling. It assumes that a well-trained and motivated sales
force can sell any product.
• Organizations could create marketing departments that would be
concerned with selling the goods, and the rest of the organization
could be left to concentrate on producing the goods.
• The reason for the emergence of the selling philosophy was the ever-
rising number of goods available after the Industrial Revolution.
• Organizations became progressively more efficient in production,
which increased the volume of goods.
• With the increased supply, competition also entered production.
• The selling philosophy also enabled part of the organization to keep
focusing on the product, via the product philosophy. In addition, the
selling philosophy held that a sales or marketing department could sell
whatever the company produced.
 MARKETING PHILOSOPHY
• However, more companies began to realize that it is easier
to sell a product that the customer wants, than to sell a
product the customer does not want. When many companies
began to realize this fact, the selling era gave way to the
marketing era of the marketing concept and philosophy.
• The marketing era started to dominate around 1950, and it
continues to the present.
• The marketing concept recognizes that the company's knowledge
and skill in designing products may not always be meeting the
needs of customers.
• It also recognizes that even a good sales department cannot sell
every product that does not meet consumers' needs.
• When customers have many choices, they will choose the one that
best meets their needs.
• The marketing concept and philosophy states that the
organization should strive to satisfy its customers' wants
and needs while meeting the organization's goals. The
best way to meet the organization's goals is also by
meeting customer needs and wants.
• The marketing concept's emphasis is to understand the
customers before designing and producing a product for
them. With the customer's wants and needs incorporated
into the design and manufacture of the product, sales and
profit goals are far more likely to be met.
• The idea of keeping close to the organization's customers
seems simple. In reality, it is very easy to forget the
customer's needs and wants. Sometimes the management
is so involved with the product that their own desires and
wants begin to take dominance, even though they have
adopted the marketing concept.
• For example:-
Many years ago—before there was a Subway on every corner
—a college student opened a small submarine sandwich shop
near his university's campus. The sub shop was an immediate
success. By using the marketing concept, the young
entrepreneur had recognized an unmet need in the student
population and opened a business that met that need.
Unfortunately, the story does not end at this point. The sub
shop was so successful that it began to outgrow its original
location after about three years. The shop moved to a larger
location with more parking spaces, also near the university. At
the new sub shop, waiters in tuxedos met the students and
seated them at tables with tablecloths. Besides the traditional
subs, the shop now served full meals and had a bar. Within a
few months the sub shop was out of business. The owner of
the shop had become so involved with his business vision that
he forgot the customers' needs and wants. They did not want
an upscale restaurant—there were other restaurants in the
area that met that need, they just wanted a quick sub
sandwich. By losing sight of the customers' wants and needs,
the owner of the sub shop lost his successful business.
 How Marketing Evolves

Marketing Marketing
Barter Production Sales
Dept. Era Co. Era
Era Era Era

Supply Supply
One- Demand Supply
Exceeds Exceeds
on-One Exceeds Equals
Demand Demand
Trading Supply Demand

Marketing Integrated
a Sub- Role for
sidiary Marketing
Function
 PROMOTION MIX

Propagating the distinctiveness of the product

and the nature and extent of value it carries by
using different methods and media of comm.

a) Personal Selling b) Advertising

c) Sales Promotion d) Publicity/Public
Relation
 What are
Marketing Communications?

Marketing communications are the

means by which firms attempt to inform,
persuade, and remind consumers, directly
or indirectly, about the products and
brands they sell.
 Modes of Marketing
Communications
• Advertising • Direct marketing
• Sales promotion • Interactive marketing
• Events and • Word-of-mouth
experiences marketing
• Public relations and • Personal selling
publicity
 Communication Platforms

Advertising Sales Promotion

• Print and broadcast ads • Contests, games,
• Packaging inserts sweepstakes
• Motion pictures • Premiums
• Brochures and booklets • Sampling
• Posters • Trade shows, exhibits
• Billboards • Coupons
• POP displays • Rebates
• Logos • Entertainment
• Videotapes • Continuity programs
 Integrated Marketing
Communications (IMC)

• As defined by the American Association of

Advertising Agencies, Integrated Marketing
Communications (IMC) “recognizes the value of
a comprehensive plan that evaluates the strategic
roles of a variety of communication disciplines—
advertising, public relations, personal selling, and
sales promotion—and combines them to provide
clarity, consistency, and maximum
communication impact.

INFORM, PURSUADE & REMIND

 INTEGRATED MARKETING
COMMUNICATION MIX
• Sum of quality product, attractive and convenient
packages, pictures and symbols, the price and
terms of sale, attractive store/showroom, and
efficient sales-person.
• “ The endeavor of presenting a set of messages to
a target market using all the 4Ps of marketing and
multiple methods, sources, cues and media, with
the objective of effectively conveying the value
proposition of a product offer, simultaneously
providing for feedback from the market for the
improvement and modification of the offer.”
 INTEGRATED MARKETING
COMMUNICATION MIX
“ A firm is not only a sender of market
messages but also a receiver of market
responses.”

PRODUCT PRICE PLACE PROMOTION

Personal Selling
Advertising
Sales Promotion
Publicity/Public Relation
Direct Marketing
 Marketing Communication Through
PRODUCT Cues
The product is a carrier of certain messages. It comm. With consumer
through its personality.
Elements of Product Personality
Physical features- the material, the size, shape, design, color, the
finish etc. convey something to the buyer. Comm. Can be:-
Visual, Tactile (touch), aroma, performance.
The package- First appeal to consumer-color, design, picture, symbols,
labels colors and illustration.
Color has great communicative significance. There are
exciting colors, dull, soothing and inviting color.there
are color evoke apetite color that invite sleep. There are colors
associated with prosperity, love and romance. There is color of war
and aggression and color of peace, colors of festivals and colors
associated with mourning. Race, religion, climate, age, education,
literacy and when prpoerly used, color is a source of emotinal
enjoyment to most people.
The brand name and logo:
Soap, Cold Cream, Shampoo,
Ponds, LakmeL’Oreal Halo, Sunsilk, Clinic-All
Clear, Dove, Lux,
DTH, LCD, Music System, Mobile
Reliance, Samsung, Philips, Nokia,
Fast-Food, Soap (Rural) Toothpaste, Motorcycle
Maggi,McDonald,Lifebouy, Colgate, Close, Hero
Honda
The company name communicate.
A TATA Product, BPL, RAYMONDS,
Marketing Communication Through PRICES Cues
• Price-quality equation: Consumers see price as an
index of quality.
• Price-status equation: Symbol of prestige or status.
 Marketing Communication Through
PLACE Cues
The Store Image
The Store Level Merchandise

Marketing Communication Through PROMOTION

Cues
Personal Selling
Advertising
Sales Promotion
Publicity/Public Relation
Direct Marketing
Dove’s Campaign for Real
Beauty
Elements in the Communications
Process
Field of Experience

Sender’s Receiver’s
field field
The Communications Process

Selective attention

Selective distortion

Selective retention
 The Marketing Communications
Mix

Any
AnyPaid
PaidForm
FormofofNonpersonal
Nonpersonal
Advertising
Advertising Presentation
Presentation by anIdentified
by an Identified
Sponsor.
Sponsor.

Sales Promotion Short-term Incentives to

Encourage Trial or Purchase.

Protect and/or Promote

Public Relations Company’s Image/products.

Personal
Personal Selling
Selling Personal Presentations.

Direct Communications With

Direct Marketing Individuals to Obtain an Immediate
Response.
 ADVERTISING

paid, nonpersonal communication

regarding goods, services,
organizations, people, places, and ideas
that is transmitted through various
media by business firms, government
and other nonprofit organizations, and
individuals who are identified in the
advertising message as the sponsor.
 PERSONAL SELLING

involves oral
communication with one or
more prospective buyers by
paid representatives for the
purpose of making sales.
 SALES PROMOTION

• Involves…paid….marketing
communication activities
• (other than advertising, publicity,
or personal selling) that are
intended to stimulate consumer
purchases and dealer effectiveness
 PUBLIC RELATIONS / PUBLICITY

• Publicity is nonpersonal public relations

that is transmitted Public relations
includes any communication to foster a
favorable image for goods, services,
organizations, people, places, and ideas. It
may be personal or nonpersonal, paid or
nonpaid, and sponsor controlled or not
controlled through media but not paid for
by an identified sponsor.
AIDS prevention campaign in West Bengal was
a unique integrated mass media campaign
 What is Advertising?
Advertising is any paid form of
nonpersonal presentation and promotion
of ideas, goods, or services by an
identified sponsor.
Procter & Gamble’s
Advertising History
The Five M’s of Advertising
 Steps in Developing Effective
Communications (Process)

Identify target audience

Determine objectives
Design communications
Select channels
Establish budget
Decide on media mix
Measure results/ manage IMC
 Determination of Target Audience
What to say
How to say
When to say
Where to say
To Whom

The process must start with a clear target audience:

potential buyers current users, deciders, or
influencers, individuals, groups, particular publics or
the general public
 Patterns of
Target Market Selection
 Patterns of
Target Market Selection
 Patterns of
Target Market Selection
Pepsi used Megamarketing in
India
 Advertising Objectives

Informative Persuasive
advertising advertising

Reminder Reinforcement
advertising advertising
 OBJECTIVE SETTING
The objectives of promotion may be categorized as
stimulating demand and enhancing company
image.
• The sequential short-term, intermediate,
and long-term promotion goals for a firm
to pursue.
Primary demand is an objective when seeking
consumer interest for a product category.
Selective demand is a later objective that seeks
consumer interest for a particular brand of a
product.
 DAGMAR
Defining Advertising Goals for Measured Advertising
Results

Russell Colley (1961) developed a model for setting

advertising objectives and measuring the results. This model
was entitled ‘Defining Advertising Goals for Measured
Advertising Results- DAGMAR.’ DAGMAR model suggests
that the ultimate objective of advertising must carry a consumer
through four levels of understanding: from unawareness to
Awareness—the consumer must first be aware of a brand or
company Comprehension—he or she must have a
comprehension of what the product is and its benefits;
Conviction—he or she must arrive at the mental disposition or
conviction to buys the brand; Action—finally, he or she actually
buy that product.
Communication Process in DAGMAR
Approach
 AWARENESS
• The model suggests that before the
acceptance of a product by an individual,
there is a series of mental steps which the
individual goes through. At some point of
time, the individual will be unaware of the
product or offer in the market. The initial
communication task of the advertising
activity is to increase consumer
awareness of the product or offer.
 COMPREHENSION & IMAGE

• The second step of the communication

process is comprehension of the product
or offer and involves the target audience
learning something about the product or
offer. What are its specific characteristics
and appeals, including associated imagery
and feelings? In what way does it differ
from its competitors? Whom is it supposed
to benefit?
 ATTITUDE
• The third step is the attitude (or conviction)
step and intervenes between comprehension
and final action.

COGNITIVE- mental image, understanding interpretation

AFFECTIVE- feelings or emotions about the object, idea
or topic.
CONATIVE- intentions, actions or behaviour
 ACTION

• The action phase involves some overt

move on the part of the buyer such as
trying a brand for the first time, visiting a
showroom, or requesting information.
 Think?
• You are a dealer or distributor and want to sell
products of a reputed company. You don't have
to worry about the image and perception of the
brand. You are just worried that customers might
not want to buy from you. And, instead, buy from
a competiting shop next to yours dealing with the
same kinds of products. In such a case-
• what should be done?
• What should be your advertising objective?
• Should you have a advertising strategy?
• What would be the ingredients of such an
advertising plan?
• What should be the budget?
 The whole communication process is a bit
more complex. And under different
circumstances, it may differ slightly, but the
basic concept revolves around what is
mentioned above. The DAGMAR approach
emphasizes the communication task of
advertising.
The second important concept of the approach
is that the advertising goal should be
specific. It should be a written, measurable
task involving a starting point, a defined
audience, and a fixed time period.
 Advertising and Consumer Behavior

• The primary goal of an IMC program is to

develop effective methods of informing,
persuading reminding and reinforcing
consumer/customer to purchase products.
The best way reach the goal is to clearly
understand how a buyer makes the
decision to purchase from a particular
vendor/retailer.
 Consumer Buying Process:

The decision making processes undertaken by consumers in regard to

a potential market transaction before, during, and after the purchase of
a product or service.

Evaluation Post-
STIMULUS Problem Information
Of Purchase Purchase
Recognition Search
Alternatives Behaviour

Demographics Social and

Factors Psychological
factors
 STIMULUS
• A cue (social, commercial, or non-commercial)
• Social cue-friends, family, co-workers etc. Interpersonal
source
• Commercial cue-Ads, personal selling and sales promotion.
• Non-commercial cue-consumer reports, the Govt. Bulletin.

• A drive (Physical) meant to motivate a person

• A physical drive occurs when a person’s physical
senses are affected. (Thirst, Hunger & fear)
• A person may be exposed to any or all these stimuli
If sufficiently stimulated, person will proceed to the
next stage in the decision process. If not, the person
will ignore the cue and delay or terminate the
decision process for the given goods, service,
organization, person, place, or idea.
 Problem Recognition

• Consumer recognizes that the goods, service

organization, person, place or idea under
consideration may solve a problem of shortage or
unfulfilled desire.

• Recognition of Shortage- Repurchase is

needed.

• Recognition of Unfulfilled Desire- Consumer

becomes aware of a goods, service, organization,
person, place, or idea that has not been bought
before.
 Information Search
where the customers go through previous memories and
experiences looking for acceptable ways to meet a need by buying
a product. An affective IMC program targets potential buyers as
they are involved in these process. The objective of
IMC/Advertising is to find out ways to influence consumer
purchasing decisions.

NEED

WANT

INFORMATION SEARCH
Starts with

Internal Search
(Mental recalling of product that might satisfy/meet the need)
How it was met in the past
 Internal Search

Purchased in the Not Satisfied/First

past and time Purchasing
satisfied

Same Purchase Decision

i) Consumer conducts a more complete internal search

ii) Not every possible brand is considered.
iii) Product tried, not met the need, left out.
iV) Little knowledge about product, left out.
v) no. of brands are reduced to a group that is
mentally manageable
 MARKETERS JOB
• Make sure brand becomes part of the
awareness set at least.
• Convincing to bring them into
consideration set by different mode of
advertisement.
• Obtain high level of brand equity-high
quality, reasonable price through attractive
and powerful advertising message.
 Search Dynamics
Market Partitioning-Identifying the hierarchy

*Brand Dominant Hierarchy-General Motors Cars Pontiac

*Nation Dominant Hierarchy-Japanese Cars Toyota Corolla

SUCCESSIVE SETS INVOLVE IN CONSUMER

DECISION MAKING

TOTAL AWARENESS CONSIDERATIO CHOICE DECISION

SET SET N SET SET
 External Search
Consumer still feel uncertain about the right
brand to purchase.

SOURCE: Friends, relatives, experts, books

magazines newspaper advertisement publicity
in-store display, sales people internet radio/TV

How much time consumer spends on?

• 1. Ability to search 2. Motivation
• 3. Cost/benefit
 MARKETERS JOB
• The consumer’s goal in making the effort to
perform an external search is to acquire
information leading to a better, more informed
decision.
• The goal of marketers is to provide information
that allows consumers to make the right choice.
When a consumer has not yet made up his mind
it is an ideal time for marketers to influence the
decision-making process.
• The key is to provide the right information at the
right time.
 Consumer Attitudes

• Mental position taken towards atopic,

person, event that influence holder’s
feelings, perceptions, learning process
and subsequent behaviors.
Attitude can drive purchase decision.
Positive attitude improve the propensity to
purchase the product.. If consumers like
advt. the probability to purchase the
product being featured increased.
 Three Components
• Affective- the feelings or emotions about
the object
• Cognitive- mental images, understanding,
and interpretation of the object
• Conative - intention to, action or behavior.
 Sequence of Events
A. Cognitive Affective Conative

B. Affective Conative Cognitive

C . Conative Cognitive Affective

Cognitive Affective Conative

Understanding feeling, emotion intention

How to develop? the product name, Some may

colors size feel
favorably
about topic
but not be
moved to
change their
purchasing
behavior.
Cognitive Affective Conative
Affective Conative Cognitive
 Evaluation Of Alternatives

• The Evoked Set Method

• The Multiattribute Approach
• Affect Referral
New Aspects in Evaluation
• Age Complexity
• Gender Complexity
• Individualism
• Active, Busy Lifestyles
• Cocooning
• Pleasure Pursuits
• Health Emphasis
 EVM MODEL
Computer   Attributes    

Memory Graphics
  Capacity=40% capability=30% Size & Weight=20% Price=10%

Dell 10 8 6 4
HCL 8 9 8 3
HP 6 8 10 5
IBM 4 3 7 8
 Post-Purchase use and Disposal
PRODUCT

KEEP IT GET RID OF IT PERMAMNENTLY GET RID OF IT TEMPORARILY

USE IT TO USE IT TO
SERVE SERVE
STORE IT LEND IT RENT IT
ORIGINAL NEW
PURPOSE PURPOSE

GIVE IT AWAY TRADE IT SELL IT THROW IT AWAY

TO BE
TO BE USED
RESOLD DIRECT TO THROUGH TO
CONSUMER MIDDLEMEN INTERMEDIRIES
 Issues to consider in setting
advertising budget
• Product Life Cycle
• Market share
• Competitive clutter
• Product Substitutability
 Advertising Plan:
Budgeting
2. 3. The firm establishes a
budget after
Assigning Establishing
Responsibility Budget considering various
1. requirements such as
Setting types of ads, medium,
Objectives frequency, and
Budget types campaign goals.
• All-you-can-afford
• Incremental
• Competitive parity
• Percentage-of-sales
• Objective-and-task
 Setting Advertising Budgets

Affordable
Method Percentage-of-Sales Method
Setting Promotion Setting Promotion
Budget at the Level the Budget at a Certain % of
Company Thinks They Current or Forecasted Sales
Can Afford.

Objective-and-Task
Competitive-Parity
Method
Method
Setting Promotion
Setting Promotion
Budget by Defining
Budget to Match
Objectives, Tasks & Costs.
Competitors’ Outlay
Elements of the Advertising Planning Process
Comparative Advertising
 The Advertising Department
Under a Centralized System

President

Production Finance Marketing R&D Human

Resources

Marketing Advertising Sales Product

Research Planning
 Packaging Strategy
• “Packaging is the least expensive form
of advertising”

• “Every package is a 5 second

commercial”

• “The package is the product”

Determining Advertising
Budgets;
Determining Advertising
Budgets;
• Determining Advertising Budgets;
• Advertising Planning and Strategy
• Creative Strategy Development
• Determining Advertising Budgets;
• Advertising Planning and Strategy
• Creative Strategy Development