Marketing 101

Prof. Mohsin Kazmi

 • Marketing is the activity for
creating capturing,
communicating, delivering
and exchanging offering that
Marketing has value for customers,
clients, partners and society
at large
• It requires thoughtful
planning

(American Marketing Association) 2

Marketing

“The process of planning and

executing the conception, pricing,
promotion, and distribution of
ideas, goods, and services to
create exchanges that satisfy
individual and organization goals.”
American Marketing Association
 Focus:
Simple Trade Era
Sell Surplus

Focus:
Production Era
Increase Supply

Over Time,
Marketing’s Role Focus:
Has Changed Sales Era
Beat Competition

Focus:
Marketing Department Era
Coordinate and Control

Focus: Long-Run
Marketing Company Era
Customer Satisfaction
Content of the lecture
The marketing process

Market analysis

Strategic decisions

The 4 P’s
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Marketing process
• Identify markets and/or groups of
customers
• Segmentation
• Determine, in line with business
strategy, the marketing mix: 4 Ps
• Product
• Promotion
• Price
• Placement
• Define and implement the
marketing plan; control and
monitor the results

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Content of the lecture
The marketing process

Market analysis

Strategic decisions

The 4 P’s
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Market analysis

Market analysis is often called Situation Analysis

The process of analyzing:

Consumer Current and Current and The Context or
Resources of the
characteristics & potential potential environmental
Firm
trends Competitors Collaborators factors
Content of the lecture
The marketing process

Market analysis

Strategic decisions

The 4 P’s
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 Segmentation Targeting Positioning

• Defining and subdividing a • The selection of potential • Actions that aim to make the
large homogenous market customers to whom a offering of the firm to occupy
into clearly identifiable business wishes to sell a distinct position, relative to
segments having similar products or services. competing offering , in the
needs, wants, or demand • Mass marketing vs multi- mind of the customer.
characteristics. segment marketing • It emphasizes the
distinguishing features of
their brand to create a
suitable image (inexpensive
or premium, utilitarian or
luxurious, entry-level or high-
end, etc.) through advertising

STP
Segmentation
• Four basic factors that affect market
segmentation are
• clear identification of the segment,
• measurability of its effective size,
• its accessibility through promotional efforts,
and
• its appropriateness to the policies and
resources of the company.

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Segmentation
• The four basic market segmentation-strategies are based
on
• behavioural,
• demographic,
• psychographic, and
• geographical differences

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Geographic Segmentation
• Division of the market based on the location of the target market
• People living in the same area have similar needs and wants that differ
from those living in other areas
• Climate
• Population density
• Taste
• Micromarketing
 • Partitioning of the market based on factors
such as
• age
• gender
Demographic • marital status
Segmentation • income
• occupation
• education
• ethnicity
 Psychographic Segmentation

Partitioning of the market based on Marketers use it to further refine a Its appeal lies in the vivid and
lifestyle and personality target market practical profiles of consumer
characteristics segments that it can produce
 • Partitioning of the market based on
attitudes toward or reactions to a product
and to its promotional appeals
• Behavioral segmentation can be done
Behavioral 1.
on the basis of:
Usage rate
Segmentation 2. Benefits sought from a product
3. Loyalty to a brand or a store
 Process of data collection
The Use of big data and algorithms
importance Challenges and difficulties
of data Decision making process
analysis and Role of experts
decision Data is just a tool
making Risk matters!

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Content of the lecture
The marketing process

Market analysis

Strategic decisions

The 4 P’s
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 A good, service, or idea that
has tangible and intangible The most visible
attributes that provide variable of the
marketing mix
satisfaction and benefit to
consumers

Group of closely

Product
related products that
are treated as a unit
Product line because of a similar
marketing strategy,
production, or end-
use

All the products

Product Mix offered by the
company
Packaging
• External container that holds & describes the
product
• Protection
• Economy
• Convenience
• Promotion
Different packaging roles
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Campbell’s restyling
• The old packaging poorly communicated
with clients
• Objective: To increase the sales by at least
2% in the next two years.
• Evaluation of biometric and ethnographic
responses
• Changes in the label:
• The disappearance of the spoon (not
significant)
• More modern bowl.
• Smell: a cloud of steam coming out of the pot.
• It lacked an element able to "emotionally
involved" the clients, the old image was
not enough communicative
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The Product Life
Cycle
Price
• The 3 C criterion:
• Cost, clients, competitors
• Four Common Pricing Objectives
• Maximize profits and sales
• Boost market share
• Maintain the status quo
• Survival
• Typologies of Price
• Price discrimination
• Hotel
• Skimming pricing
• Lead users
• Prestige pricing
• Penetration pricing
• Psychological pricing
• 9.99 euro
• Dynamic pricing
Placement
(1)
 Marketing
Channel A group of organizations that
moves products from their
producer to consumers
Retailers
Buy products from manufacturers
Placement and sell them to customers for
(2) uses other than resale
Wholesalers
Intermediaries that buy from
producers or other wholesalers
and sell to retailers
 Selection of distributions
channels
• Typology of product/service, logistics,
competitive context, brand equity,
Placement company objectives
(3)
Role of Intermediaries
• Information, finance, risk management,
promotion, market analysis
 Advertising

Promotion (1) Personal Selling

Publicity
 Sales promotion
• Uses such items as coupons, contests, and
free samples to persuade buyers to
purchase products
• Stimulates customer purchasing
Promotion (2) • Enhances other promotional efforts
• Generally less expensive than advertising

Sponsorships
• A firm pays to be associated with a specific
event
• Increase brand awareness and brand image