USB:MBA – Industry Collaborated Programs

Subject Name-Marketing Management

Subject Code: 21BBT619,21BHT605
Faculty Name: Harneet Kaur

Unit-1 Marketing Concept

DISCOVER . LEARN . EMPOWER
Syllabus
Unit-1 Introduction to Marketing Management

Introduction to Marketing: Meaning and Scope of Marketing; Marketing Philosophies; Concept of

Introduction to Marketing Marketing Mix; Understanding Marketing Environment
 

Market Environment analysis, SWOT Analysis, Market Segmentation, Bases for Segmenting
Consumer and Business Markets, Targeting and Positioning strategy, Marketing Control, Marketing
STP Strategy Audit. Product Life Cycle

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What is Marketing??

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Selling Vs. Marketing

In the sales process, a The marketing theory is a

salesperson sells whatever business plan, which affirms
products the production that the enterprise’s profit
department has produced. lies in growing more efficient
The sales method is than the opponents, in
aggressive, and customer’s manufacturing, producing and
genuine needs and imparting exceptional
satisfaction is taken for consumer value to the target
granted. marketplace. Here customer
needs are given preference.

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 NEED Vs Want, Demand
A need is a consumer's desire for a product's or service's specific benefit, whether
that be functional or emotional.
On the other hand, a consumer want is the desire for products or services that are
not necessary, but which consumers wish for.

Demands are requests for specific products that the buyer is willing to and able to pay
for.Eg. BMW 5
Marketing…….
1. It’s about identifying and meeting human and social needs.

2. It involves creating, communicating, delivering, and exchanging

offerings(value) that have value for customers.

3. It’s all about “meeting needs profitably”.

So, it’s
An organizational function and a set of process for creating, communicating and
delivering, value to customers and that benefit the organization.

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 Examples
• Google
• IKEA furniture
• Zomato
• Flipkart
• Introduction of Electric vehicles and so on….

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 Marketing
Definitions of Marketing
According to American marketing association: 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.
According to a social definition, Marketing is a societal
process by which individuals and groups obtain what they need
and want through creating, offering, and exchanging products
and services of value freely with others.
Dr. Philip Kotler defines marketing as “the science and art of
exploring, creating, and delivering value to satisfy the needs of
a target market at a profit.
Scope of Marketing
In the scope of marketing, the various aspects covered are:
1. What is marketing?
2. How marketing is done?
3. What is/are marketed?
4. Who are involved in such activities?
5. How to incorporate the dynamism?
“The aim of marketing is to know and understand the customer
so well the product or service fits him and sells itself.”
~ Peter F. Drucker
“Marketing is too important to be left to the marketing
department.”
~ David Packard
Four Stages of Marketing
Companies must go through multiple stages of marketing to ensure their products or services are ready for
selling.
• Ideation: Marketing starts when you develop an idea for a product or service. Before launching a product or
services, you must decide what you are selling, how many options are available, and how it will be packaged
and presented to consumers.
• Research and testing: Before you can take your idea public, you should perform marketing research and
testing. Marketing departments usually test new product concepts with focus groups and surveys to gauge
consumer interest, refine product ideas, and determine what price to set. Researching your competitors can
help you set an optimal price and generate ideas for positioning your brand in an existing market.
• Advertising: The information you gather in your research will help you define your marketing strategy and
create an advertising campaign. Campaigns can include different forms of media, events, direct advertising,
paid partnerships, public relations, and more. Before beginning an advertising campaign, set concrete
benchmarks that you can use to measure how effective that advertising campaign is.
• Selling: Determine where and how you plan to sell to customers. Consumer product companies, for example,
sell to wholesalers who then sell to retailers. In the industrial market, the buying process is longer and
involves more decision-makers. You may sell locally, nationally, or even internationally, and some companies
only sell their products or services online. Your distribution and sales channels impact who buys your
products, when they buy them, and how they buy them.
Activities found in Marketing
• It involves the activity of meeting needs of all.
• It is essentially exchanging of goods and services and ends in actual transactions bringing in the
earnings / profits.
• Marketing involves continuous market survey and research to know the changing needs of
people. Accordingly, the changes and modifications are made in the goods and services. There
is a greater need for knowing the expectations of all the type of consumers.
• In all, it covers all the direct and indirect functions relating to the flow of goods and services
from the point of producers and final consumers.

****Exchange is the act of obtaining a desired object from someone by offering something in
return.
Marketing Philosophies/Concepts

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 7 Eras of Marketing
Department took control, customer
Department defined Need taken into consideration

Markets intensified, sales techniques. Real time

Long lasting
Mass production Quality not taken care of, connection,
relationships
needs were taken for granted technology
Hand made products
Philosophies:
The idea of production concept – “Consumers will favor products that are available and highly
affordable.”
The product concept holds that consumers will favor products that offer the most quality,
performance, and innovative features.
The selling concept holds the idea- “consumers will not buy enough of the firm’s products unless it
undertakes a large-scale selling and promotion effort.”
The marketing concept holds- “achieving organizational goals depends on knowing the needs and
wants of target markets and delivering the desired satisfactions better than competitors do.”
The societal marketing concept holds “marketing strategy should deliver value to customers in a
way that maintains or improves both the consumer’s and society’s well-being.”
Tesla promises a big push for green energy with electric cars and solar roof panels/tiles.

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 Simple Trade Era (Pre-Industrial
Revolution):
The simple trade era was a time
when everything was hand created
and only available in a limited
supply. It was also a time when
basic commodities ruled.
Households would produce what
they consumed.
 Mass Production Era (1860s-1920s)
The production era began during
the Industrial Revolution. Products
were produced in mass and at a low
cost. Typically businesses only
produced one product at a time.
Also during this era, businesses had
the mindset of, “if produced,
someone will buy” and thus
increase profitability. Due to the
current market, businesses could
sell anything they produced.
 Sales Era (1920s-1940s)
As the market continued to become more
saturated and intensify, competition increased
among businesses. This created a need for
marketing and sales techniques. Companies
hoped through persuasion techniques that
they could convince customers to purchase
their products. However, companies were
concerned with selling products simply to get
rid of them for a profit, not because it would
fulfil the needs of their customers. Everything
in the sales era was about the price, not the
quality of the products or the customer
needs.
Marketing Department Era (1940s-1960s)
The marketing department was
defined during this era. We see
advertising, sales, promotions,
and anything marketing related
all grouped into one
department.
 Marketing Company Era (1960s-1990s)
• This is an era when the marketing department takes control. We see the marketing
department help guide a company’s direction. All employees are also involved in
marketing, making it important for the success of the company.
• In addition, there is a shift from mass production to the need to satisfy customers. The
customers become king and are now the main focus. Businesses survive because they are
here to fulfill the needs of customers. Distribution channels and pricing strategy are also
defined during the marketing company era.
Relationship Marketing Era (1990s-2010):
During the relationship marketing era, the focus is not only on creating
relationships with customers but also long-term relationships. The
ultimate goal for businesses is to create customer loyalty. Businesses
want to create products that will ensure their customers come back
every time.
Social/Mobile Marketing Era (2010-
Present):
Businesses focus on being social and connecting with clients in real-
time. Due to technology, businesses and customers can communicate
24/7. The customer is in the driving seat now, not businesses.
Philosophies:

The idea of production concept – “Consumers will favor products that are available and highly
affordable.”
The product concept holds that consumers will favor products that offer the most quality,
performance, and innovative features.
The selling concept holds the idea- “consumers will not buy enough of the firm’s products unless it
undertakes a large-scale selling and promotion effort.”
The marketing concept holds- “achieving organizational goals depends on knowing the needs and
wants of target markets and delivering the desired satisfactions better than competitors do.”
The societal marketing concept holds “marketing strategy should deliver value to customers in a
way that maintains or improves both the consumer’s and society’s well-being.”
Tesla promises a big push for green energy with electric cars and solar roof panels/tiles.

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 Q3 : What is Marketed ?

What is
Marketed

Goods Services Events Experiences Persons Places Organizations Information Ideas

Universities
Test drives Palaces of
Rajasthan Social media

Cricket World Cup Abki Baar Modi Sarkar

What schools gives to parents
Some Common terms….

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 Customer Consumer 

Definition

Customer is the one who is purchasing the goods. Consumer is the one who is the end user of any goods or services.

Ability to resell

Customer can purchase the good and is able to resell Consumers are unable to resell any product or service.

Need for purchase

Customers need to purchase a product or service in For a consumer purchasing a product or service is not essential.
order to use it.
Motive of buying

The motive of buying is either for resale or for The motive of buying is only for consumption
consumption
Is payment necessary

Must be paid by customer May or may not be paid by the consumer

Target group

Individual or Company Individual, family or group

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Difference between Products and Services
• Tangibility
• Storage/Perishability
• Quantification
• Inseparability/Simultaneity
• Quality comparison
• Return ability

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Marketing Mix
• The marketing mix refers to the set of actions, or tactics, that a
company uses to promote and position its brand or product in the
market to attract the desired customer .

• Simply put the Marketing Mix is a tool used by businesses and

Marketers to help determine a product or brands’ offering.
• The 4 Ps have been associated with the Marketing Mix since their
creation by E. Jerome McCarthy in 1960.

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4 P’s of Marketing
• The four Ps are the four essential factors involved in marketing a good
or service to the public.
• These are the four Ps:
 The Product (the good or service),
 The Price (what the consumer pays),
 The Place (the location where a product is marketed), and
 Promotion (the advertising).

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Product/Service
• What does the customer want from the product /service? What needs does it satisfy?
• What features does it have to meet these needs?
• Are there any features you've missed out?
• Are you including costly features that the customer won't actually use?
• How and where will the customer use it?
• What does it look like? How will customers experience it?
• What size(s), colour(s), and so on, should it be?
• What is it to be called?
• How is it branded?
• How is it differentiated versus your competitors?
• What is the most it can cost to provide and still be sold sufficiently profitably?
Place: ensures that the product is distributed and made
conveniently available for the consumer 

• Where do buyers look for your product or service?

• If they look in a store, what kind? A specialist boutique or in a
supermarket, or both? Or online? Or direct, via a catalogue?
• How can you access the right distribution channels?
• What do your competitors  do, and how can you learn from that
and/or differentiate?
Price

• What is the value of the product or service to the buyer?

• Are there established price points  for products or services in this
area?
• Is the customer price sensitive? Will a small decrease in price gain you
extra market share? Or will a small increase be indiscernible, and so
gain you extra profit margin?
• What discounts should be offered to trade customers, or to other
specific segments  of your market?
• How will your price compare with your competitors?
Promotion

• Where and when can you get your marketing messages across to your target
market?
• Will you reach your audience by advertising online, in the press, on TV, on
radio, or on billboards? By using direct marketing mailshots? Through PR? On
the internet?
• When is the best time to promote? Is there seasonality in the market? Are
there any wider environmental issues that suggest or dictate the timing of
your market launch or subsequent promotions?
• How do your competitors do their promotions? And how does that influence
your choice of promotional activity?
Using the 4Ps of Marketing
• The model can be used to help you decide how to take a new offer to
market. It can also be used to test your existing marketing strategy .
Whether you are considering a new or existing offer, follow the steps below
to help you to define and improve your marketing mix.
• Start by identifying the product or service that you want to analyze.
• Now go through and answer the 4Ps questions – as defined in detail above.
• Try asking "why" and "what if" questions too, to challenge your offer. For
example, ask why your target audience needs a particular feature. What if
you drop your price by 5 percent? What if you offer more colors,flavours?
Why sell through wholesalers rather than direct channels? What if you
improve PR rather than rely on online advertising?
Product in the Marketing Mix of Zomato
What does the customer want from the product /service? What needs does it satisfy?

• Zomato is an app / website which shows restaurants and food menu

to its users.
• Zomato provides the user with the restaurant details, their images,
rates, menus and even portal for customers’ feedback where people
can voice their opinions regarding the experience, taste at a particular
restaurant.
• This application helps the restaurants which do not have their own
websites.

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 Zomato Place & Distribution Strategy:
Where do buyers look for your product or service?

• Zomato, an online service is available on Windows platform, Android

and iOS platform.
• It is available in 25 countries which include India, Australia, USA,
Chile, Malaysia, United Arab Emirates, Portugal, South Africa and
many more.
• The interface is user friendly and has nine language options viz.
English, Italian, Spanish, Portuguese, Turkish, Slovak, Indonesian,
Polish and Italian.

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Zomato Price/Pricing Strategy:
What is the value of the product or service to the buyer?

• Zomato charges commissions from restaurant partners for listing on its app and
delivering food.
• Delivery charges are paid by users, which are passed down to delivery partners.
• Customers also pay for packaging charges on select orders, which again are passed
through to restaurant partners.
• The restaurants’ advertising which Zomato does on their site or application is the
major source of their revenue.
• Event based advertising when restaurant hold an event and use Zomato as a
medium to advertise their event.
• There is a commission set on the ticket sales through Zomato.
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Zomato Promotion & Advertising Strategy:
Where and when can you get your marketing messages across to your target market?

• Zomato is known for its content marketing strategy. In content marketing they aim to
advertise extensively via images. 
• The social media is an important channel to market their services.
Along with posts and messages, Zomato has collaborations with Paytm, Uber, Food
Bloggers which display Zomato as an option for any food related queries customers
search on these applications.

***Content marketing is a marketing strategy used to attract, engage, and retain an

audience by creating and sharing relevant articles, videos, podcasts, and other media

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Do it yourself….
• Choose any industry of your choice, identify its key players and
discuss its Marketing Mix.
• Think of a new Business idea/plan and discuss its Marketing Mix.

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The extended 7 Ps:
• People – All companies are reliant on the people who run them from front line Sales staff to the
Managing Director. Having the right people is essential because they are as much a part of your
business offering as the products/services you are offering.
• Processes –The delivery of your service is usually done with the customer present so how the
service is delivered is once again part of what the consumer is paying for.
• Physical Evidence – Physical evidence is a collection of tangible cues that signals service quality.
Although physical evidence belongs to operations or production area, it becomes a domain of
interest to marketing because of its ability to impact customers.
Cleanliness, wall color, dress of staff, equipment appearance, signboards, stationery etc. convey what a hospital is
all about in terms of its quality standards and position in relation to competition.

Marketing is the process of getting the right goods or services or ideas to the right people at the right place, time,
and price, using the right promotion techniques and utilizing the appropriate people to provide the customer
service associated with those goods, services, or ideas.

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Effect of cultural values on Marketing Mix
As cultural differences emerge strongly in business environments, understanding how
to adapt the marketing mix to different markets is a necessary as well as complex task
for an exporting company.
Each of the four pillars of the marketing mix (product, price, place and promotion)
undergoes a radical change in the cultural adaptation phase.
Marketing managers should adapt the marketing mix to cultural values and constantly
monitor value changes and differences in both domestic and global markets
Product-Packaging, Presentation
Price-legalities
Placement-relationship with distribution channels
Promotion –Content choice based on culture

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 Marketing Environment

The Marketing Environment includes the Internal factors (employees,

customers, shareholders, retailers & distributors, etc.) and the External
factors( political, legal, social, technological, economic) that surround the
business and influence its marketing operations.
Internal factors are mostly within the control of an organization; whereas,
external factors do not fall within its control. The external factors include
government, technological, economical, social, and competitive forces;
whereas, organization’s strengths, weaknesses, and competencies form
the part of internal factors.

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Internal, Micro and Macro environment
• Internal Environment – The Internal Marketing Environment includes all the factors that are
within the organization and affects the overall business operations. Resources, capabilities
etc.
• Microenvironment- The Micro Marketing Environment includes all those factors that are
closely associated with the operations of the business and influences its functioning.
Competitors, suppliers, customers.
• Macro Environment-The Macro Marketing Environment includes all those factors that exist
outside the organization and can not be controlled. These factors majorly include Social,
Economic, Technological Forces, Political Legal Influences and Environmental
influences. These are also called as PESTLE/PESTEL framework.

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PESTLE/PESTEL
In marketing, before any kind of strategy or
tactical plan can be implemented, it is
fundamental to conduct a situational analysis.
Organisations that successfully monitor and
respond to changes in the macro-environment are
able to differentiate from the competition and
create a competitive advantage. Depending on
the organisation, It is often used in collaboration
with other analytical business tools such as
the SWOT analysis and Porter’s Five Forces to give
a clear understanding of a situation and related
internal and external factors.
Throughout the years people have expanded the
framework with factors such as Demographics,
Intercultural, Ethical and Ecological
The outcomes of a PESTEL analysis can then be
used to populate the opportunities and threats in
a SWOT analysis.

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Political factors Economic factors Social factors
• Government stability/instability •Growth rate •Life expectancy rates
•Interest rate •Age distribution
• Corruption level •Wealth distribution
•Inflation rate
• Tax policies •Social classes
•Exchange rate •Per capita income
• Freedom of press •Availability of credit •Family size and structure
• Government regulation and •Level of disposable income •Lifestyles
deregulation •Propensity of people to spend •Health consciousness
• Special tariffs •Gross domestic product trend •Average disposable
•Unemployment trend income
• Government involvement in trade •Attitude towards
unions and agreements •Stock market trends
government
•Price fluctuations
• Amount of government protests •Attitude towards work
•Buying habits
• Defense expenditures
•Ethical concerns
• Level of government subsidies •Cultural norms and values
• Import-export •Religion and belief
regulation/resctrictions •Education level
•Attitudes towards saving
• Trade control •Attitude towards investing
• Size of government budgets •Attitudes towards
retirement
•Attitudes towards leisure
time
•Attitudes towards product
quality 54
•Attitudes towards
Technological factors Environmental factors
•Technology incentives •Weather
•Automation •Climate
•R&D activity •Environmental policies
•Technological change •Climate change
•Access to new technology •Pressures from NGO’s
•Level of innovation •Natural disasters
•Technological awareness •Air and water pollution
•Internet infrastructure •Recycling standards
•Communication •Attitudes towards green
infrastructure products
•Support for renewable energy
Legal factors
•Employment laws
•Consumer protection laws
•Copyright and patent laws
•Health and safety laws
•Education laws
•Consumer protection laws
•Data protection laws
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Examples
• Political: A government may levy a new tax policy or fiscal policy or trade tariffs in a new
financial year which can affect the revenue generation of organizations to a large extent.
• Economic: Less interest rate means more money to spend. When a consumer pays less in
terms of interest, it means he is left with more money to spend on, which in turn, creates a
ripple effect of high spending throughout the economy.
• Social: McDonald's, Dominos are more prevalent in urban cities rather than rural areas.
• Technological: Kodak failure coz of introduction of digital photography
• Legal: Nestle had to take away the packets of Maggi from the stores’ shelves after the  Food
Safety and Standards Authority of India (FSSAAI) summoned Nestle because of their
negligence to adhere with the laws of food safety. Regulators found lead content beyond the
permissible limit in its instant noodle product.
• Environmental: Global warming due to use of coal and oil, govt has framed certain guidelines
and rules curbing use of coal and oil, hence coal industry is impacted

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 SWOT ANALYSIS
SWOT Analysis is a simple but useful framework for analyzing your
organization's strengths, weaknesses, opportunities, and threats.
a. To address what you're lacking,
b. To minimize risks, and
c. To take the greatest possible advantage of chances for success.
 What and Why
What is SWOT analysis?
• Strategic planning (and analysis) Technique
• Helps identify Strengths, Weaknesses, Opportunities and Threats
• Related to Business competition or project planning
• Helps to specify the objectives of a business venture or projects and identify the internal and external factors
that are favorable or unfavorable to achieve this objectives
Why it is used?
• Explore new solutions to problems
• Identify barriers that will limit the goals and objectives
• Decide on direction that will be most effective
• Reveal possibilities and limitations for change.
• Act as a brainstorming tool
 HELPFUL HARMFUL

INTERNAL STRENGTH WEAKNESS

Organization BUILD SHORE UP

OPPORTUNITIES THREATS
INVEST MONITOR
EXTERNAL
Environment
Strengths
Strengths are things that your organization does particularly well, or in
a way that distinguishes you from your competitors.
What do you do better than anyone else? 
What others see as your strength?
What unique or lowest-cost resources can you draw upon that others
can't?
• Identify and analyze your Organization’s UNIQUE SELLING
PROPOSITION(USP) and add it to Strengths Section

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Weaknesses
Here, you Focus on your people, resources, systems, and procedures.
Think about what you could improve, and the sorts of practices you
should avoid.
What are you lacking?
How and why your competitors are doing better than you?
Place all the weaknesses in weakness quadrant.

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Opportunities
Chances for something positive to happen but you should spot them by
keeping an eye on developments.
They might arise as developments in the market you serve, or in the
technology you use. 
Being able to spot and exploit opportunities can make a huge
difference to your organization's ability to compete and take the lead
in your market.
What interesting market trends are you aware of, large or small,
which could have an impact?
You should also watch out for changes in government policy related
to your field.

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Threats
Threats include anything that can negatively affect your business
from the outside, such as supply chain problems, shifts in market
requirements, or a shortage of recruits.
It's vital to anticipate threats and to take action against them before
you become a victim of them.
Evolving technology is an ever-present threat, as well as an
opportunity!

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Learning how to do SWOT
Suppose you are
CEO of a NEW
consultancy firm,
you want to have
clear picture of the
business and
decide its future
strategy. You call
your team to give
inputs.
Lets explore AMAZON…………

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 Amazon
• Year founded: 1994
• Founded by: Jeff Bezos
• Headquarters: Seattle, USA
• Present in 200+ countries and territories.
• Leading online retailer 
• Competitors: Walmart, Alibaba, eBay,Flipkart etc…
Amazon.com has a number of products and services available, including:
• Amazon Fresh Echo
• Kindle Amazon Prime
• Amazon Web ServicesAlexa
• Video Music
• Amazon Digital Software & Video Games

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AMAZON Strengths
I. Customer Oriented/Centric
II. Continuous Innovation-Leveraging Technology
III. Brand Image
IV. Large No. of third party sellers
V. Go Global and act Locally
VI. Market Leader
VII. Highly efficient logistics and distribution system. 
VIII.Selection of goods, convenience and fast fulfillment -USP

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Amazon’s weaknesses
I. Easily imitable business model
II. Product failures-Kindle, Amazon basics
III. Tax controversy in some countries
IV. Anti Trust charges for unfair use of customer data
V. Very Few Retail stores
VI. Over Dependence on distributors
VII. over-diversified product-line

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 Amazon’s Opportunities
Amazon can gain the opportunity
• Expanding its global footprint 
• By expanding physical stores in developing countries
•  More acquisitions of e-commerce companies to increase market
share
• New markets
• Healthcare, pharmacy

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Amazon’s Threats
• Hacking which leaves its consumer data exposed
• Tough Competition(EBAy, Wallmart)
• New entrants-Imitation
• Fake products
• Fake reviews
• Government regulations

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Do IT Yourself
-Draw your own SWOT analysis.
-What according to you are Strengths of TESLA?
-What according to you is Opportunities for OLA and so on……………..

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Market Segmentation
Segmenting a market, is separating a group of customers belonging to the mass market into
smaller groups of customers with similar needs and behaviours.
In doing so, a company establishes a target for their marketing efforts (i.e., target market) and can,
therefore, better customize its services and products to meet the target’s preferences..
Thus,
Market segmentation adds to a business’ ability to cater to diverse needs of a considerably sized
consumer market, where various sections of consumers may have varied needs, interests and
perceptions of different products and services.
This is a much more affordable, effective and efficient way to reach potential clients and generate
revenues.
Marketers often use the term Market to cover various groupings of customers.
It is a 3 stage process:
(1) group potential buyers into segments (2) target and (3) position

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Bases for Grouping Potential customers into segments
The main goal here is to create various customer segments based on specific criteria and traits .

 
Market Segmentation
Segmentation base Brief explanation of base (and example)
Quantifiable population
Demographic characteristics. ( age, gender, income,
education, socio-economic status,
family size or situation).
Geographic Physical location or region ( country,
state, region, city, suburb, postcode).
Psychographics(Lifestyle Lifestyle, social or personality
characteristics. (analyses of consumer
Segmentation) attitudes, values, behaviors,
emotions, perceptions, beliefs, needs,
benefits, wishes, and interests
Purchasing beaviour, consumption or
usage behaviour. ( Needs-based,
Behavioral benefit-sought, usage occasion,
purchase frequency, customer loyalty,
buyer readiness).
The same consumer changes in their
attractiveness to marketers based on
Contextual and situational context and situation. This could be
from a needs, motivation and
circumstances perspective.
Typical segments examples
Some brands are targeted only to women, others only to
men. Music streaming services tend to be targeted to the
young, while hearing aids are targeted to the elderly.
urban versus rural, north versus south, seacoasts versus
interior, warm areas versus cold etc.
Socially Aware; Traditionalists, Conservatives, Active
'club-going' young professionals
Tech-savvy; Heavy users, Enthusiasts; Early adopters,
Opinion Leaders, Luxury-seekers, Price-conscious,
Quality-conscious.
1.Actively shopping, just entering into a life change
events, 
2.being physically in a certain location, or at a particular
retailer which is known from GPS data via
smartphone(shopping online)
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Bases of segmentation
Demographic Segmentation
• This is the segmentation of a market based on personal attributes such as age,
gender, ethnicity, education, etc.
Geographic Segmentation
• This segmentation of a market is based on country, region, state, or city.
Psychographic Segmentation
• This segmentation is based upon an individual’s personality, values, lifestyle, or
beliefs.
Behavioral Segmentation
• This is the process of segmentation that is based on the target individual’s
purchasing behavior
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Demographical Segmentation
Demographics are the breakdown of your customer personas
in the market for cursory traits like age or gender. These traits
offer basic information on your customers and are often
considered one of the more broad segmentation types.
Examples of demographic segmentation include age, income,
family size, education, or gender.
Dive into these segments to cut down on time and resources
to understand your target audience. Or tap into potential
consumers that you have yet to reach. Demographics are
generally less invasive to collect than other segmentation
types.
Demographic Segmentation Examples
• Occupation
• Age
• Marital status
• Race
• Religion
• Living status (if your subject is a homeowner or renter)
 Behavorial Segmentation
Behavioral segmentation digs deeper into customers'
purchasing habits than demographic
segmentation. It’s also one of the most popular
customer profile types to be integrated into
marketing campaigns. Behavioral segmentation
comprises behavior patterns, like customer loyalty or
engagement level, specific to customer interactions
with a brand or company.
Behavioral Segmentation Examples
• Benefit(s) sought from product or service(what
benefits customer is looking for?)
• Readiness to buy or purchase(how much time it
takes to make purchase decision)
• Usage-based segmentation
• Occasion based
 Psychographic Segmentation
• Psychographics is a type of customer segmentation that
focuses on inner or qualitative traits. Psychographic
segmentation capitalizes on this by dividing customers based
on psychological factors, which include behaviors,
personalities, lifestyles, and beliefs. These factors are then
analyzed to predict how you, the customer, will respond to
focused marketing campaigns.
• Psychographic attributes are the ones that aren’t obvious just
by looking at your customer, like demographic segmentation.
Instead, psychographics requires deeper analysis.
• While demographics explain 'who' your buyer is,
psychographics inform you 'why' your customer buys.
Psychographic Segmentation Examples
• Habits
• Hobbies, activities, or interests
• Values or opinions
• Personality or attitude:personality and purchasing habits are
strongly related.
• Lifestyle(standard):subdividing into deeper sections
• Social status: apple iphone, luxury car
Geographical Segmentation
Geographics are the study of your customer based
on their physical location, which can affect more
physical interactions in the market. Consumers
grouped in similar areas may share similar
preferences. That’s why this type of market
segmentation is excellent to pair alongside more
abstract types, like behavioral.
Geographic Segmentation Examples
• City
• State
• Country
• Population density
• Economic status
• Regional climate 
Targeting
Step two of the STP marketing model is targeting. Your main goal here is to look at the segments you have
created before and determine which of those segments are most likely to generate desired conversions.
• Your ideal segment is one that is actively growing, has high profitability, and has a low cost of
acquisition. Various factors impacting this are:
• Size: Consider how large your segment is as well as its future growth potential.
• Profitability: Consider which of your segments are willing to spend the most money on your product or
service. Determine the lifetime value of customers in each segment and compare.
• Reachability: Consider how easy or difficult it will be for you to reach each segment with your
marketing efforts. Consider customer acquisition costs (CACs) for each segment. Higher CAC means
lower profitability. Each segment must be accessible to your team and the segment must be able to
receive your marketing messages
• Last, think carefully about how well your organization can service this market. For example, are there
any legal, technological or social barriers that could have an impact? Conduct a PEST Analysis.
CLV and CAC
• Customer lifetime value (CLV) is a measure of the average customer's
revenue generated over their entire relationship with a company.
• Customer acquisition cost (CAC) is the cost related to acquiring a new
customer.
Formula:

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Targeting Strategies

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Undifferentiated or Mass Targeting:
With this strategy, the marketing team views the market as one group
using a single marketing strategy.
The point of mass marketing is to reach as many people as possible, in
the hope that they get on board with your brand. One advantage of this
approach is that it’s cost-effective. It’s cheaper for brands to
manufacture goods and produce content that is targeted to, well,
everyone.
Fundamentally, there is no targeting at all. Everyone is a potential
customer. 
This is most common when it comes to things that people will always
need or want. Like toothpaste, toilet roll, washing up liquid, furniture,
and so on.

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Concentrated or Niche Targeting:

• This approach combines mass and segmentation marketing by

focusing on a particular market niche on which marketing efforts are
targeted.
• This type of marketing requires to customize its marketing strategy for
defined market segment better than its competitors. Due to this
reason companies have to conduct competitors’ analysis to find out
strengths and weaknesses of existing and potential competitors.
Rolex watches concentrated on luxury segment.
E.g: You segmented furniture market choosing urban people also
choosen segments like Office or home furniture and then targeted
Furniture for home decor for small apartments

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 Differentiated or Multi-Segment Targeting:

This strategy is used by marketers to target multiple markets using a

unique marketing strategy for each. Multi-segment targeting mainly
offers benefits to large consumer product firms that offer multiple
products.
E.g., Soccer shoes and baseball shoes within a wider product category
footwear.

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Customized or Micro-Marketing

• There are different approaches to micromarketing. For example, a business may

decide to run a micromarketing program by offering promotions specifically to
its loyal customer base; matching special offers to unhappy or lost consumers;
tailoring products to consumers with unique needs; marketing goods and
services to residents in a particular town or region; or offering products to
targeted consumers with specific job titles or career designations.
• This newest target marketing approach, catalysed by the Internet, is generally
used to attract targeted customers with individualised marketing programs. For
micro-marketing segmentation to be effective, the marketer must, to some
degree, allow customers to “build-their-own” products.
• Providing tailormade solutions

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 Positioning
• The final step in this framework is positioning, which allows you to set your product or
services apart from the competition in the minds of your target audience and finding out
what it is that makes you stand out. 
• Positioning defines where your product (item or service) stands in relation to others offering
similar products and services in the marketplace as well as the mind of the consumer.
• Positioning is something (a perception) that happens in the minds of the target
market whereas differentiation is something that marketers do, whether through product
design, pricing or promotional activity
• E.g.
• Audi position themselves as a luxury status symbol
• Starbucks positions itself as a trusted source of upscale quality coffee and beverage
• McDonald’s positions itself as a place to get quick and cheap meals
• Microsoft and Apple position themselves as a tech company that offers innovative and user-
friendly products.
Positioning Factors
There are three positioning factors that can help you gain a competitive
edge:
• Symbolic positioning: It is when a customer has an affection, social
connection, ego identification etc. with the product.The luxury car
industry is a great example of this – they serve the same purpose as any
other car but they also boost their customer’s self-esteem and image.
Audi position themselves as a luxury status symbol.
• Functional positioning:  It focuses on the function, benefit or utility that
it gives to the customer. Benefits: Colgate (Prevents cavity and fresh
breath).
• Experiential positioning: Focus on the emotional connection that your
customers have with your brand. It is one of the basis of the experiences
which a customer can relate to. Events-:new snacks, drinks  
• The most successful product positioning is a combination of all three
factors. One way to visualize this is by creating a perceptual map for
your industry. Focus on what is important for your target customers and
see where you and your competitors land on the map.

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Benefits of STP marketing

• Allows brands to increase sales by defining a particular target market.

• Enables brands to position products directly at precise target markets
• Helps in the identification of gaps in the market
• Avoids unnecessary expenditure by not advertising to the whole market
• Enables small-sized businesses to find success in niche markets
• Helps marketers spot and compare marketing opportunities
• Improved allocation of marketing budgets
• Allows identification of profitable segments
• Provides development of appropriate service packages for each market segment
STEP formula
The STEP Formula
Segmentation + Targeting Equals Positioning
• This formula clearly illustrates that each segment requires tailored
positioning and marketing mix to ensure its success.

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Repositioning
Repositioning involves drastically altering your brand to change what customers think
about your products.
Repositioning involves completely altering how the target market perceives the product. 
Repositioning is defined as altering the position of a brand or product in the minds of the
customer relative to the offerings of the competitive product.
Reasons
• If a product is performing poorly or causing the company to lose money, it may be cost
effective in the long term to reposition the item or service.
• If there has been a major shift in cultural trends or the economy, it may be necessary to
reposition a product to make it more relevant.
• Change in technology.

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Other Aspects
Repositioning can involve changing other aspects of a brand or product,
including:
• Product price
• Marketing strategy
• Target audience
• Customer engagement
• Color scheme
• Logo design
• Tagline
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Product Life cycle
A product life cycle is the amount of time a product goes from being
introduced into the market until it's taken off the shelves.

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Stages of PLC
• Introduction: This phase generally includes a substantial investment in advertising and a marketing
campaign focused on making consumers aware of the product and its benefits. Company tries to
build awareness about the product or service in a market where there is less or no competition.
• Growth: If the product is successful, it then moves to the growth stage. This is characterized by
growing demand, an increase in production, and expansion in its availability. The growth stage is
the period during which the product increasingly gains acceptance among consumers, the
industry, and the wider general public.
• Maturity: This is the most profitable stage, while the costs of producing and marketing decline.
• Decline: A product takes on increased competition as other companies emulate its success—
sometimes with enhancements or lower prices. The product may lose market share and begin its
decline.
• Extended life cycle: An extension strategy is usually introduced between the maturity and
saturation stages of the product life cycle, before a real decline takes place. The aim is to
continue to maintain a steady rate of revenue from a product.

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Introduction Stage
Growth Stage
Maturity Stage
Decline Stage
Marketing Control
• Marketing control refers to the measurement of the company’s
marketing performance in terms of the sales revenue generated,
market share captured, and profit earned. Here, the actual result is
compared with the standard set, to find out the deviation and make
rectifications accordingly.
• When we say control, it is not about overpowering the personnel, but
it means enhancement of efficiency, by reducing the chances of errors
and meeting the standards set by the management.

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Types of Marketing Control
• Annual plan control is the monitoring of current marketing efforts and results to ensure that the annual
sales and the profit goals are achieved. Annual plan control signifies continuous ongoing performance
verification against the annual plan and taking the necessary corrective actions.
• Profitability control is to determine the actual profitability of the firm’s products, territories, market
segments and trade channels. Profitability control is exercised to examine whether the company is making
and losing the money.
• Efficiency control is the task of improving the efficiency of such marketing activities as personal selling,
advertising, sales-promotion and distribution. Efficiency control is undertaken to evaluate and improve the
spending efficiency and impact of marketing expenditures on the marketing operations.
•
Strategic control refers to the in-depth study undertaken to examine whether the company is pursuing its
best opportunities with respect to markets, products and channels.
The tools of strategic control are two namely, marketing effectiveness rating review and marketing audit.
Marketing effectiveness is measured by how well a company's marketing strategies increase its revenue
while decreasing its costs of customer acquisition.

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Marketing audit
Marketing Audit is a comprehensive,sytemetic, independent and
periodic examination of a company’s or business unit’s marketing
environment, objectives, strategies and activities with a view to
determining problem areas and opportunities and recommending a
plan of action to improve the company’s marketing performance.”
In general, marketing control assesses the achieved market outcomes,
the marketing costs incurred and the degree of achievement of the
marketing goals. In turn, the marketing audit evaluates the way it
works.

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What is a Market?
• The term market refers to the group of consumers or organizations
that is interested in the product, has the resources to purchase the
product, and is permitted by law and other regulations to acquire the
product. A market is a place where buyers and sellers can meet to
facilitate the exchange or transaction of goods and services.
• Marketers often use the term market to cover various groupings of
customers.
• A target market is a group of people with some shared characteristics
that a company has identified as potential customers for its products. 

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Consumer Vs Business Markets…
What are Consumer Markets?
• This is a market whereby businesses or producers sell their products
or services directly to the final consumers. 
What are Business Markets?
• Business markets refer to organizations, businesses or entities that
acquire products and services for use in the production of other
services and products.

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Customer value Triad and value Proposition
Customer Value Triad: A customer-value triad highlights perceived goods quality,
perceived service quality, and value-based prices. Customer Value Triad refers to an
initiative by marketers to satisfy consumers in quality, service and price related
aspects.
We all know that Mercedes is always considered as the leader in engineering and design, but their engineers are always
given two guidelines. First guideline states that, ‘Build the best car in the world,’ and the second guideline states that ‘Build a
more affordable car without breaking rule number one.’

Value Proposition: A value proposition refers to the value a company promises to

deliver to customers should they choose to buy their product. The proposition is an
easy-to-understand reason why a customer should buy a product or service from that
particular business. A value proposition should clearly explain how a product fills a
need, communicate the specifics of its added benefit, and state the reason why it's
better than similar products on the market. 
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Holistic Marketing
To be holistic implies to be fully responsible for something in all respects.

According to the Business Dictionary, holistic marketing is "a marketing strategy that is developed by thinking
about the business as a whole, its place in the broader economy and society, and in the lives of its customers. It
attempts to develop and maintain multiple perspectives on the company's commercial activities."

According to Philip Kotler, an American marketing professor and consultant, defines holistic marketing as a concept
that is  "based on the development, design, and implementation of marketing programs, processes, activities that
recognize their breadth and interdependencies. Holistic marketing recognizes that 'everything
matters' with marketing and that a broad, integrated perspective is necessary to attain the best solution."
Holistic marketing is done by jointly designing and implementing marketing plans for stakes, clients, staff, suppliers,
and the community.

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 Interactive public information center

To keep customers connected

nitor performance of several

ting tactics

Webinars

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 Components of Holistic Marketing

• Relationship marketing
• Integrated marketing- A strategy for delivering a unified, holistic
message across all of the marketing channels that a brand uses. To
provide consistency wherever customers choose to interact with a brand.
• Internal marketing
• Socially responsible marketing
• Performance marketing- Return of the marketing efforts

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Read the passage carefully
Marketing is a department of management that tries to design strategies that will build profitable
relationships with target consumers.
There are five alternative concepts under which organizations design and carry out their marketing
strategies.
The Sales Concept focuses on the needs of the seller.  The Marketing Concept focuses on the needs of the
buyer. The idea of production concept – Consumers will favor products that are available and highly
affordable. But easy availability and low cost are not only the conditions governing customers buying
decisions. Marketing concept holds that the key to achieving its organizational goals consists of the
company being more effective than competitors in creating, delivering, and communicating customer
value to its selected target customers. The marketing concept rests on four pillars:  target market,
customer needs, integrated marketing and profitability. The Marketing Concept represents the major
change in today’s company orientation that provides the foundation to achieve competitive advantage.
Societal marketing calls for sustainable marketing, socially and environmentally responsible marketing
that meets consumers’ and businesses’ present needs while also preserving or enhancing future
generations’ ability to meet their needs.

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Marketing is a department of management that tries to design strategies that will build profitable relationships with
target consumers.
There are five alternative concepts under which organizations design and carry out their marketing strategies.
The Sales Concept focuses on the needs of the seller.  The Marketing Concept focuses on the needs of the buyer. The
idea of production concept – Consumers will favor products that are available and highly affordable. But easy availability
and low cost are not only the conditions governing customers buying decisions. Marketing concept holds that the key to
achieving its organizational goals consists of the company being more effective than competitors in creating, delivering,
and communicating customer value to its selected target customers. The marketing concept rests on four pillars:  target
market, customer needs, integrated marketing and profitability. The Marketing Concept represents the major change in
today’s company orientation that provides the foundation to achieve competitive advantage. Societal marketing calls for
sustainable marketing, socially and environmentally responsible marketing that meets consumers’ and businesses’
present needs while also preserving or enhancing future generations’ ability to meet their needs.
Consumer will buy low priced products those are produced in large quantity-Which is this concept
1.Service concept 2.Brand concept 3.Production concept 4.Product concept
This concept talk about providing compétitive advantage. Which concept is this?
1.Service concept 2.Brand concept 3.Production concept 4.Marketing Concept  
____concept focuses on Seller’s needs
1.Sales concept 2.Brand concept 3.Production concept 4.Marketing Concept
A popular burger brand is offering tasty as well as healthy food with burgers wrapped in clean and convenient
packaging. This is example of
1.Sales concept 2.Brand concept 3.Production concept 4.Societal marketing
Production concept requires wide-------network
1.road 2.railways 3.radio 4.distribution
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