1ClC CnL

nA1u8L SCCL Anu SlCnlllCAnCL Cl

MA8kL1lnC
uLllnl1lCn Cl MA8kL1lnC
MA8kL1lnC AC1lvl1lLS
MA8kL1lnC Anu LxCPAnCL
MA8kL1lnC MAnACLMLn1 8CCLSS
MA8kL1lnC PlLCSCPlLS
SlCnlllCAnCL Cl MA8kL1lnC
ueflnlLlons of markeLlng
1he managemenL
process responslble for
anLlclpaLlng and
saLlsfylng cusLomer
requlremenLs proflLably
(Chartered Inst|tute of
Market|ng)
1he process of
deflnlng anLlclpaLlng and
creaLlng cusLomer needs
and of organlzlng Lhe
company's asseLs and
resources Lo saLlsfy Lhem
for Lhe greaLer proflL of
Lhe cusLomer and Lhe
flrm (D IC88Lk8radford
Un|vers|ty Schoo| of
Management )
AML8lCAn MA8kL1lnC ASSCClA1lCn
(1960)
MarkeLlng conslsLs of Lhe performance of
buslness acLlvlLles LhaL dlrecL Lhe flow of
goods and servlces from producer Lo
consumer (AMA 1960)
ln a very shorL and slmple form markeLlng can
be deflned as Managlng needs proflLably"
MA8kL1lnC
1otol system of bosloess octlvltles JeslqoeJ to ploo
ptlce ptomote ooJ Jlsttlbote woot sotlsfyloq
ptoJocts/setvlces to pteseot ooJ poteotlol
costomets( w 51AN1ON)
Morketinq ls o soclol ooJ moooqetlol ptocess by
wblcb loJlvlJools ooJ qtoops obtolo wbot tbey oeeJ
ooJ woot tbtooqb cteotloq offetloq ooJ excbooqloq
ptoJocts of voloe wltb otbets
(kO1lk 2006)
CC8L CCnCL1S Cl MA8kL1lnC
-eeds and Wants
1he sLarLlng polnL for Lhe dlsclpllne of markeLlng lles ln
human needs and wants eople need food alr
waLer cloLhlng and shelLer Lo survlve 8eyond Lhls
people have sLrong deslre for recreaLlon educaLlon
and oLher servlces
A useful dlsLlncLlon can be made beLween needs and
wanLs
A human need ls a sLaLe of felL deprlvaLlon of some
baslc saLlsfacLlon eople requlre food cloLhlng
shelLer safeLy belonglng and a few oLher Lhlngs for
survlval
JAn1S
wonts are deslres for speclflc saLlsflers of Lhese
deeper needs A sLudenL needs food and wanLs
chlcken chlps Pe needs cloLhlng and wanLs [eans
Lrouser
eople's needs are few buL Lhelr wanLs are many
Puman wanLs are conLlnually shaped and
reshaped by soclal forces and lnsLlLuLlons such as
churches schools famllles and buslness
corporaLlons
MA8kL1 Anu MA8kL1L8S
Crlglnally Lhe Lerm markeL sLood for Lhe place
where buyers and sellers gaLhered Lo
exchange Lhelr goods 8uL ln markeLlng
market conslsLs of all Lhe poLenLlal cusLomers
sharlng a parLlcular need or wanL LhaL mlghL
be wllllng and able Lo engage ln exchange Lo
saLlsfy LhaL need or need ln markeLlng we
use Lhe Lerm Lo cover varlous groups of
cusLomers
8CuuC1S
eople saLlsfy Lhelr needs and wanLs wlLh
producLs A roduct can be deflned as
anyLhlng LhaL can be offered Lo someone Lo
saLlsfy a need or wanL Je wlll use Lhe Lerm
producL Lo cover physlcal producLs servlce
producLs and oLher Lhlngs LhaL can be
exchanged Lo saLlsfy needs/wanLs Lxample A
car A Lrouser A chalr A moblle phone eLc
LxCPAnCL
O xcbooqe ls tbe oct of obtololoq o JeslteJ ptoJoct ftom
someooe by offetloq sometbloq lo tetoto lot excbooqe to
toke ploce flve cooJltloos most be sotlsfleJ
O 1 1bete ote ot leost two pottles
O 2 ocb potty bos sometbloq tbot mlqbt be of voloe to
tbe otbet potty
O J ocb potty ls copoble of commoolcotloo ooJ Jellvety
O 4 ocb potty ls ftee to occept ot teject tbe offet
O Lach parLy belleves lL ls approprlaLe or deslrable Lo
deal wlLh Lhe oLher parLy
MAln MA8kL1lnC AC1lvl1lLS
ueLermlnaLlon of Lhe needs JanLs and
uemand sLrucLure of Lhe LargeL markeL
uevelopmenL of Lhe MarkeLlng Mlx
ManagemenL of Lhe MarkeLlng rocess
MA8kL1lnC 8CCLSS
O MarkeLlng process lnvolves flve sLeps as follows
1undersLand cusLomer's needs/wanLs
2ueslgn cusLomerdrlven markeLlng sLraLegy
3uevelop markeLlng programs LhaL dellver superlor value
48ulld proflLable relaLlonshlp and cusLomer dellghL
CapLure value from cusLomers/ proflL and cusLomer
quallLy
1PL 8CLL Cl MA8kL1lnC MAnACL8
1he role of markeLlng Manager ls Lo manage
proflLable relaLlonshlp wlLh cusLomers
Lhrough creaLlng value Lo Lhe cusLomer and ln
reLurn capLure value from Lhem
MA8kL1lnC MAnACLMLn1
uefinition ls tbe ooolysls ploooloq lmplemeototloo
ooJ coottol of ptoqtoms JeslqoeJ to cteote bollJ
ooJ molotolo beoeflclol excbooqes ooJ telotloosblps
wltb totqet motkets fot tbe potpose of ocblevloq
otqoolzotloool objectlves
Morketinq Monoqement Process Aoolyzloq motket
oppottooltles keseotcbloq ooJ selectloq totqet
motkets ueveloploq motketloq sttoteqles lloooloq
motketloq toctlcs ooJ lmplemeotloq ooJ coottollloq
tbe motketloq effott
MA8kL1lnC PlLCSCPlLS
roducLlon ConcepL
Sales ConcepL
roducL ConcepL
MarkeLlng ConcepL
SocleLal MarkeLlng ConcepL
PollsLlc markeLlng
8CuuC1lCn CCnCL1
1bls wos tbe fltst pbllosopby of bosloess lt
JoteJ bock ftom wbeo moo stotteJ to
excbooqloq qooJs to 1920s lo tbe u5A
1be ptoJoctloo coocept bolJs tbot coosomets
wlll fovot tbose ptoJocts tbot ote wlJely
ovolloble ooJ low lo cost Moooqets of
ptoJoctloootleoteJ otqoolzotloos cooceottote
oo ocblevloq blqb efflcleocy ooJ wlJe
Jlsttlbotloo covetoqe
8CuuC1lCn CCnCL1
O ln Lhls sLage manufacLurers Lyplcally focused on lncreaslng
ouLpuL whlle assumlng LhaL cusLomers would seek ouL and
buy reasonably prlced producLs 1he assumpLlon LhaL
consumers are lnLeresLed ln producL avallablllLy and low prlce
holds ln aL leasL Lwo Lypes of slLuaLlons
O 1he flrsL ls where Lhe demand for a producL exceeds supply
O 1he second slLuaLlon ls where Lhe producL's cosL ls hlgh and
has Lo be broughL down Lhrough lncreased producLlvlLy Lo
expand Lhe markeL
O 9h||osohy cusLomers would seek ouL and buy reasonably
prlced producLs
O Cb[ect|ve Mlnlmlse cosLs Lo lower Lhe prlces
O ow locus on roducLlon and ulsLrlbuLlon efflclency
8CuuC1 CCnCL1
Managers ln Lhese producLorlenLed
organlsaLlons focus Lhelr energy on maklng
good producLs and lmprovlng Lhem over Llme
1hese managers assume LhaL buyers admlre
wellmade producLs and can appralse producL
quallLy and performance
9h||osohy quallLy producLs sell Lhemselves
Cb[ect|ve keep quallLy hlgh
ow Maklng good producLs and lmprovlng
Lhem over Llme
SLLLlnC CCnCL1 1920190
#9roducts even good ones dont necessar||y
se|| themse|ves Customers must be
conv|nced to buy roducts"
9h||osohy roducts don't se|| themse|ves
Customers must be conv|nced to buy
roducts
Cb[ect|ve max|m|se sa|es revenue
ow aggress|ve romot|on to create
demand
MA8kL1lnC CCnCL1 1901970
MarkeLlng concepL beglns wlLh Lhe cusLomer 1he
mosL cenLral premlse of Lhe markeLlng concepL sLaLes
LhaL we should flrsL flnd ouL whaL Lhe cusLomer
wanLs and needs Je Lhen sLrlve Lo develop
markeLlng program almed aL fllllng Lhose wanLs and
needs
9h||osohy saLlsfylng cusLomers' needs and wanLs
Cb[ect|ve cusLomer and proflL orlenLaLlon ln whole
flrm
ow focus on LoLal markeLlng mlx
Marketing
Orientation
ntegrated
customer
focus
Long run profits
through customer
satisfaction
Sales
Orientation
Push! Push!
Sell! Sell!
by promotion
Short term
gains in profit
via sales increases
LvoluLlon of Lhe markeLlng concepL
!roduction
Orientation
ny colour you
like, as long as
it's black
Profits through
production controls
Marketing
Orientation
ntegrated
customer
focus
ctually putting the
customer first but
watching the
competition
Sales
Orientation
Push! Push!
Sell! Sell!
by promotion
Saying that the
customer comes first
AnoLher way of looklng aL Lhls
!roduction
Orientation
ny colour you
like, as long as
it's black
Putting the factory/
product first
1he markeLlng concepL
Marketing Concept
%he achievement of corporate goals through
meeting and exceeding customer needs
better than the competition
Customer orientation
Corporate activities are focused upon
providing customer satisfaction
Integrated effort
ll staff accept the responsibility
for creating customer satisfaction
GoaI achievement
%he belief that corporate goals can
be achieved through customer
satisfaction
Marketing concept
%he achievement of corporate goals
through meeting and exceeding
customer needs better than the
competition
Customer
orientation
Corporate activities are
focused upon providing
customer satisfaction
Integrated effort
ll staff accept the
responsibility for creating
customer satisfaction
GoaI achievement
%he belief that corporate
goals can be achieved
through customer
satisfaction
ulllL8LnCLS 8L1JLLn SLLLlnC Anu
MA8kL1lnC CCnCL1S
SELLNG CONCEP% #E%NG
CONCEP%
Orientation Volume Profit
%ime Horizon Short term profitability Long term profitability
eans Hard selling promotion ntegrated marketing
Focus Needs of the seller
Start Existing Products %arget Customers
Emphasis chieving ore Sales Customer Satisfaction
SocleLal MarkeLlng
1hls ls probably one of Lhe newesL concepL of
markeLlng ln here markeLlng ls deflned Lo
lncorporaLe Lhe needs of Lhe socleLy ln Lhe
normal buslness operaLlons of Lhe company
?ou can achleve Lhe needs of Lhe organlzaLlon
Lhrough lncorporaLlng Lhe lnLeresLs of Lhe
socleLy Lg envlronmenLal proLecLlon and
glvlng back parL of Lhe proflL Lo Lhose ln need
PollsLlc markeLlng
1hls ls a coheslve approach of markeLlng or raLher
LoLal markeLlng ln Lhe sense LhaL ln Lodays
markeLlng everyLhlng maLLers"
PollsLlc markeLlng brlngs four lmporLanL aspecLs
of markeLlng namely
lnLegraLed markeLlng
8elaLlonshlp markeLlng
lnLernal markeLlng
erformance markeLlng
MarkeLlng CusLomer value
1he role of markeLers ls Lo dellver value Lo Lhe
cusLomers and ln reLurn capLure value from
Lhem Lhrough creaLlng sLrong relaLlonshlp
wlLh good cusLomers
MarkeLers are noL compelled Lo serve each
and every cusLomer Lhrough proper
segmenLaLlon and careful analysls of buyer
behavlour Lhey are able Lo selecL proflLable
segmenLs Lo serve
MarkeLlng and cusLomer value
uellverlng value means percelved beneflLs of
Lhe producLs/offerlngs should ouLwelgh Lhe
cosLs/rlsks assoclaLed ln acqulrlng Lhe
producLs/offerlngs
MarkeLlng ls abouL creaLlng cusLomer value
roducL beneflLs
Servlce beneflLs
8elaLlonal beneflLs
lmage beneflLs
MoneLary cosLs
1lme cosLs
Lnergy cosLs
sychologlcal cosLs
Customer
value
Perceived
benefits
Perceived
sacrifice
!ositive Negative
SIG-IIICA-CL CI MAkkL1I-G
1o lndlvlduals SaLlsfacLlon AccesslblllLy lnformaLlon
and ulLlmaLely Plgh sLandard of llvlng
1o CrganlzaLlons roflLablllLy markeL share
compeLlLlveness Sales 8evenue LlquldlLy
8elaLlonshlps lnnovaLlveness and lnformaLlon
1o Lhe SocleLy LmploymenL Lconomlc CrowLh Plgh
SLandard of Llvlng ollLlcal and Lconomlc Lles
MCuuLL 2 MA8kL1lnC 18LnuS
SCAnnlnC 1PL Lnvl8CnMLn1
MA8kL1lnC ln1LLLlCLnCL Anu lnlC8MA1lCn
S?S1LM
MA8kL1lnC 8LSLA8CP S?S1LM
uLMAnu MLASu8LMLn1 Anu lC8LCAS1lnC
uA1A JA8LPCuSlnC Anu MlnlnC
CPAnClnC A81LnS Cl CLC8AL Anu lnulAn
CCnSuML8S
MA8kL1lnC LAnnlnC 8CCLSS
1he markeLlng envlronmenL
Company
Microenvironment
Macroenvironment
egaI
!oIiticaI
TechnoIogicaI
SociaI
Economic
SuppIiers Customers
Distributors
Competitors
VMV
Some posslble LS1 facLors
9o||t|ca| ] Lega|
1 Legal sysLem ln Lhe counLry
2 Lconomlc sysLem adopLed
3 1axaLlon pollcy
4 lnLernaLlonal Lrade pollcy
ollLlcal sLablllLy/peace securlLy
Soc|a| ] Lco|og|ca|
1 opulaLlon demographlcs
(household slze no of cars)
2 lncome dlsLrlbuLlon
3 Level of envlronmenLal concern
4 ALLlLudes Lo work lelsure
LducaLlon levels
Lconom|c
1 8uslness cycle8oom slump
2 lnLeresL raLes / lnflaLlon
3 unemploymenL level
4 8aw maLerlals avallablllLy
ulsposable lncome
1echno|og|ca|
1 CovL spendlng on research
2 Speed of Lakeup of new
Lechnology
3 8arrlers Lo enLry
4 lnfrasLrucLure
Merglng of unrelaLed" secLors
eg banks Lelecomms
ote: EXAM!ES O
Porter's 5 Forces
|ndustry |ndustry
6ompet|tors 6ompet|tors
|ntens|ty of |ntens|ty of
R|va|ry R|va|ry
uyers 8upp||ers
New
Entrants
8ubst|tutes
7hreat of 7hreat of
hew Entrants hew Entrants
7hreat of 7hreat of
3ubstitutes 3ubstitutes
8argaining 8argaining
Power of Power of
3uppliers 3uppliers
8argaining 8argaining
Power of Power of
8uyers 8uyers
8aslc cusLomer (markeL) lnformaLlon
Jho are Lhey?
Jho could Lhey/should Lhey be?
Pow are Lhelr needs/expecLaLlons meL?
Pow loyal are Lhey?
Pow do Lhey raLe Lhe company
producL/prlce/servlce
Pow do Lhey raLe Lhe company ln relaLlon Lo Lhe
compeLlLlon?
JhaL relevanL broad macro changes are Laklng
place?
8aslc compeLlLor lnformaLlon
Jho are Lhey and whaL are Lhelr ob[ecLlves?
Are Lhey llkely Lo change?
JhaL ls happenlng Lo markeL share?
Can we compare our proflLablllLy wlLh Lhelr
proflLablllLy?
JhaL are Lhelr sLrengLhs and weaknesses?
Pow do cusLomers raLe Lhe compeLlLlon ln
relaLlon Lo our company?
JhaL wlll provoke Lhe blggesL reLallaLlon from
Lhe compeLlLlon?
lnLernal markeLlng audlL checkllsL
Marketing Structures
WMarketing organisation
WMarketing training
WIntra- and interdepartmental
communication
Operating
Results
(by product, customer,
geographic region
WSales
WMarket share
WProfit margins
WCosts
Strategic
Issues Analysis
WMarketing objectives
WMarket segmentation
WCompetitive advantage
WCore competences
WPositioning
WPortfolio analysis
Marketing
Systems
WMarketing information system
WMarketing planning system
WMarketing control system
Marketing
Mix
Effectiveness
WProduct
WPrice
WPromotion
WDistribution
1he markeLlng envlronmenL
Company
Microenvironment
Macroenvironment
egaI
!oIiticaI
TechnoIogicaI
SociaI
Economic
SuppIiers Customers
Distributors
Competitors
VMV
S W
O T
LffecLlve use of SJC1
STRENGTHS WEAKNESSES
O!!ORTUNITIES THREATS
atching
Strategies
Conversion
Strategies
Conversion
Strategies
MAC8C Lnvl8CnMLn1AL lAC1C8S
ollLlcal lacLors
Legal lacLors
Lconomlc lacLors
CulLural lacLors
Soclal lacLors
uemographlc lacLors
1echnologlcal lacLors
hyslcal lacLors
MlC8C Lnvl8CnMLn1AL lAC1C8S
Company
Suppllers
ulsLrlbuLors
CompeLlLors
CusLomers
ubllcs
ln1L8nAL lAC1C8S
llnanclal lacLors
ersonnel and Puman 8esource lacLors
roducLlon and operaLlonal lacLors
MarkeLlng lacLors
MA8kL1lnC LAnnlnC
MarkeLlng plannlng ls Lhe Lhlnklng abouL
and decldlng on markeLlng plans for Lhe
buslness Lo achleve markeLlng ob[ecLlves
Mlsslon sLaLemenL
1hls ls a sLaLemenL of purpose whlch aLLempLs Lo
answer Lhe quesLlon as whaL buslness are we
ln?"
normally mlsslon sLaLemenLs are developed aL
corporaLe level and Lhey provlde scope of
operaLlons by deflnlng key sLakeholders of Lhe
buslness(employees mgL cusLomers)
Lxample Coogle mlsslon sLaLemenL Lo organlze
world's lformaLlon and make lL unlversally
accesslble and useful"
vlslon
vlslon ls Lhe long Lerm Lhlnklng of Lhe
buslness
JhaL Lhe buslness asplres Lo become ln Lhe
long Lerm
8AnCALC8L unlvL8Sl1? asplres Lo
become
Lxamples of vlslon sLaLemenLs by Lhe sLudenLs
MarkeLlng ob[ecLlves
MarkeLlng ob[ecLlves refer Lo Lhe goals whlch a
markeLer wanLs Lo achleve wlLh ln Lhe glven buslness
envlronmenL
MarkeL share
roflLablllLy
Sales Lurn over
roducLlvlLy
8eLurn on lnvesLmenL
MarkeLlng plans
MarkeLlng plans are Lhe means Lo achleve Lhe
deslred end ln Lhe organlzaLlon
lL concerns wlLh whaL Lhe markeLer has
declded Lo do wlLh ln Lhe envlronmenL Lhe
buslness ls operaLlng from Lo achleve
compeLlLlve advanLage
CompeLlLlve advanLage
1he company ls sald Lo have compeLlLlve advanLage lf lL can
produces goods/servlces ahead of lLs compeLlLors of and
manage Lo brlng Lhem Lo Lhe markeL aL relaLlvely low prlces
Lhan Lhose charged by compeLlLors
Accordlng Lo orLer Lo achleve compeLlLlve advanLage a
company has Lo choose and remalns focus on wheLher belng
cosL leadershlp or dlfferenLlaLed
Company should noL sLuck ln Lhe mlddle by dolng boLh
vision / Nission / values vision / Nission / values
PEST / S Forces PEST / S Forces
SWOT analysis SWOT analysis
1.Porter's strategies 1.Porter's strategies
2.Strategies (ANSOFF) 2.Strategies (ANSOFF)
Sub Sub strategies/ strategies/
Tactics: Narketing Nix Tactics: Narketing Nix
Positioning Positioning
Customers Customers
Company Company
Nkt Development Nkt Development
Diversification Diversification
Neasurement, Evaluation S Neasurement, Evaluation S
Control Control
!nt/Ext Environment !nt/Ext Environment
Competitors Competitors
Nkt Penetration Nkt Penetration
New Prod Devt New Prod Devt
Promotion Promotion
Price Price
Product Product
Place Place
What do we What do we
want? want?
Where are Where are
we now ? we now ?
Where do Where do
we want to we want to
go ? go ?
How do we How do we
get there ? get there ?
Where did Where did
we get to ? we get to ?
People People
Process Process
1he MarkeLlng lannlng rocess
ComponenLs of Lhe markeLlng plan
1 LxecuLlve summary
2 SlLuaLlon analyslscusLomers compeLlLors
company conLexL (4C's analysls)
3 MarkeLlng opporLunlLles/lssuesSJC1 Analysls
4 ueveloplng markeLlng ob[ecLlves
MarkeLlng sLraLegy/sLraLegles
61argeL markeLs/segmenLs
7oslLlonlng sLraLegy
ComponenLs of Lhe markeLlng plan
8 MarkeLlng mlx developmenLproducL prlclng
promoLlon and placlng
9 Crganlzlng markeLlng acLlvlLles
10 lmplemenLlng and conLrol
11 SeL conLlngency plan/plans
MarkeLlng 8esearch deflned
A cosLeffecLlve way of flndlng ouL whaL people belleve
Lhlnk wanL need or do (MarkeL 8esearch SocleLy web slLe)
1he dlsclpllned collecLlon and evaluaLlon of speclflc daLa Lo
help undersLand cusLomers (Chlsnall)
1he sysLemaLlc and ob[ecLlve process of generaLlng
lnformaLlon Lo ald maklng markeLlng declslons (Zlkmund)
1he funcLlon LhaL llnks Lhe consumer cusLomer and publlc Lo
Lhe markeLer Lhrough lnformaLlon lnformaLlon used Lo
ldenLlfy and evaluaLe markeLlng opporLunlLles and
problems generaLe reflne and evaluaLe markeLlng acLlons
monlLor markeLlng performance and lmprove undersLandlng
of markeLlng as a process
(AMA Amerlcan MarkeLlng Assoc)
vision / Nission / values vision / Nission / values
PEST + PEST +
S Forces S Forces
Segmentation, Targeting Segmentation, Targeting
S Positioning: S Positioning:
Opportunity Analysis Opportunity Analysis
and selection and selection
Tactical Tactical
!mplementation: !mplementation:
Narketing Nix Narketing Nix
Strengths Strengths
Weaknesses Weaknesses
Product/service Product/service
objectives objectives
Opportunities Opportunities
Threats Threats
Product/service Product/service
objectives objectives
Promotion
Price
Product
Place
People Process + Physical
Jhere M8 flLs ln Lhe plannlng process
!nternal !nternal
SWOT SWOT

.
9
2

.
9
0

.
9
2

.
9
0

Customers
8esearch 1
undersLandlng Lhe envlronmenL
Company
Microenvironment
Macroenvironment
egaI
!oIiticaI
TechnoIogicaI
SociaI
Economic
SuppIiers Customers
Distributors
Competitors
VMV
C%EGO# EXPLES
Product %esting
design/performance/appearance
Services %esting new services or means of
services delivery
Customer Why customers buy (or do not buy)
Where they buy from
Pricing Changes/discounts/promotions/
seasonality
Substitution/elasticity
Promotion %o reduce risks/costs
%o effectively promote to target
markets
Distribution mproving supply chain
Going direct
8esearch 2
1ypes of research
8esearch 3
MarkeLlng research meLhods
rlmary ('fleld') or Secondary ('desk')
CuanLlLaLlve (who whaL when where how) or
CuallLaLlve (why)
Cccaslonal or ConLlnuous
LxploraLory (galnlng ldeas lnslghL)
uescrlpLlve (esLabllshlng frequencles) or Causal
(deLermlnlng cause effecL)
lL sLarLs wlLh secondary research
- used Lo deflne Lhe markeLlng problem
- 8ased on publlshed daLa
- usually based on a range of lnLernal and exLernal
sources
- Jhole ofLen greaLer Lhan Lhe sum of Lhe parLs
Secondary daLa sources
&SNESS
NFO#%ON
NEEDS
Quality
press
usiness Periodicals
%rade
agazines
cademic Journals
Government
statistics
Directories
Company #eports
External
nternal
Customer records Sales reports
Supplier statistics
#esearch data
Customer complaints
Customer enquiries
And ls followed wlLh prlmary research
- CollecLlon and lnLerpreLaLlon of quallLaLlve/
quanLlLaLlve daLa noL avallable Lhrough oLher
means
1ypes of prlmary research
CuanLlLaLlve daLa
used Lo measure evaluaLe and compare markeL slze segmenLs brand
lmage adverLlslng effecLlveness eLc
rovldes sLaLlsLlcally robusL numerlcal daLa for declslonmaklng
MeLhods l2l phone selfcompleLlon emall onllne
CuallLaLlve daLa
used Lo flnd ouL how and why people Lhlnk feel behave ln cerLaln ways

for nu brand developmenL communlcaLlons

Lnhances undersLandlng of cusLomers / consumers
MeLhods l2l depLhs LeledepLhs focus groups
creaLlve sesslons onllne groups/depLhs observaLlon
useful lnformaLlon ls
8elevanL for Lask
AccuraLe
CurrenL
CosLeffecLlve Lo collecL
CompleLe / sufflclenL
verlflable
8ellable
Clear
8esearch 4
1he markeLlng research process
Data anaIysis and interpretation
Research !Ianning
nitial contact; research brief; research proposal
ExpIoratory Research
Secondary research; qualitative research; consultation with
experts;observation
Main quantitative data coIIection
Descriptive research; experimental research; the sampling
process; the survey method; questionnaire design
Report writing and presentation
1yplcal M8 problems
lrequenLly underLaken because lL should be!
Lxpendable lLem of markeLlng budgeL
ShorL Lerm Lrouble shooLlng
Commlssloned by separaLe deparLmenLs
Cverload of lnformaLlon
uefenslve
ConflrmaLory
LefL Lo roL!
CbLalnlng value from M8
value of M8 should be undersLood
CosL of M8 should be [usLlfled
lnformaLlon should be produced LhaL ls
needed
Should noL be conflrmaLory or defenslve
lnLernal cllenL for each pro[ecL
lnformaLlon should be shared
ueclslons should always be made as a resulL of
M8
PoweverlL helps Lo
- Make beLLer declslons
- 8educe uncerLalnLy
- 8educe rlsk
- 8ase declslons on facL
raLher Lhan lnLulLlon
- undersLand our sLaff Lhe servlce
Lhey provlde Lo our cusLomers
Without vaIid and reIiabIe
information, management decision
making wouId soon degenerate into
some crazy game of chance"
(Chisnall)
nd...
uLMAnu MLASu8LMLn1 Anu lC8LCAS1lnC
OMarkeLers usually measure Lhe demand of Lhe
producL by looklng aL Lhe amounL/quanLlLy
boughL ln a glven perlod of Llme ln a deflned
geographlcal area or group of cusLomers
segmenL
Oln measurlng demand Lwo lmporLanL aspecLs
needed Lo be conslderedpoLenLlal and
exlsLlng markeLs
SALLS vCLuML
Sales volume ls Lhe quanLlLy of merchandlzes
sold ln a glven perlod of Llme
1oLal quanLlLy sold
SomeLlmes Lhe markeLers measure sales on
each merchandlze/producL llne
SALLS 8LvLnuL
Sales revenue ls Lhe amounL of money
recelved by markeLers ln Lhe whole process of
exchanglng of goods/servlces
lL ls Lhe quanLlLy sold Llmes Lhe prlces of Lhe
merchandlzes
1oLal recelpL of Lhe merchandlzes sold
lC8LCAS1lnC
ls Lhe arL of anLlclpaLlng whaL buyers are llkely
Lo do under a glven seL of condlLlons
ln vlew of Lhls markeLers use number of
Lechnlques Lo deLermlne Lhelr fuLure
buslnesses
fuLure demand of Lhelr producLs/servlces
sales forecasLlng
markeL share forecasLlng
lC8LCAS1lnC
1hree baslc componenLs should be known ln
forecasLlng demand for an organlzaLlon
markeL poLenLlal
company demand
sales forecasLlng
MarkeL poLenLlal
ls Lhe llmlL approached by markeL demand ln
an lndusLry ln a glven markeLlng envlronmenL
Maxlmum llmlL of demand for a
producL/servlce ln an lndusLry
Companles should be lnLeresLed ln Lhe
producL peneLraLlon percenLage whlch ls Lhe
percenLage of ownershlp/usage of producL ln
a populaLlon
Lg Lhe percenLage of people wlLh moblle
phones ln lndla percenLage of reLall buslness
ln LoLal naLlonal ouLpuL eLc
CCMAn? uLMAnu
Company demand ls slmply lLs markeL share ln
Lhe glven perlod of Llme
lL Lhe company esLlmaLed share of markeL
demand aL alLernaLlve levels of company
markeLlng efforLs ln a glven perlod of Llme
1he markeL share of Lhe company depends so
much on how lLs producLs servlces prlces
and communlcaLlons are percelved by
cusLomers
CCMAn? SALLS lC8LCAS1
Cnce a markeLer has esLlmaLed company
demand Lhe duLy now ls Lo choose a level of
markeLlng efforLs
1he chosen level wlll deLermlne Lhe expecLed
level of sales
1he company sales forecasL ls Lhe expecLed
level of company sales based on Lhe chosen
markeLlng plan/pollcles and an assumed
markeLlng envlronmenL
CCMAn? SALLS lC8LCAS1
1JC lMC81An1 CCnCL1S
Sales quoLa
Sales budgeLs
Sales quoLa
ls Lhe sales goal seL for producL llne company
dlvlslon or sales represenLaLlves
ManagemenL always seL quoLa on Lhe basls of
company forecasL
Cenerally Lhe sales quoLas are seL ln sllghLly
hlgher Lhan sales forecasL Lo sLreLch Lhe
efforLs of Lhe sales force
SALLS 8uuCL1
ls Lhe conservaLlve esLlmaLe of Lhe expecLed
volume of sales and ls used prlmarlly for
maklng currenL purchaslng producLlon and
cash flow declslons
lL ls based on LoLal sales forecasL and Lhe need
Lo avold excesslve rlsk
Cenerally seL sllghLly lower Lhan sales forecasL
CCMAn? SALLS C1Ln1lAL
1he maxlmum amounL LhaL can be sold by a
company relaLlve Lo lLs compeLlLors ln a glven
markeLlng envlronmenL
Careful dlsLlncLlon beLween company sales
poLenLlal and markeL poLenLlal should be
made
MarkeL poLenLlal ls for Lhe whole lndusLry
unless Lhe company has 100 of Lhe LoLal
markeL share
demand forecasLlng
ln forecasLlng fuLure buslnesses markeLers
use Lhe meLhod known as Lhree sLage
procedures
1 Macro economlc forecasL
2 lndusLry forecasL
3 8eLaller/wholesaler sales forecasLlng
1MAC8C LCCnCMlC lC8LCAS1
lnflaLlonary raLe
unemploymenL
consumer spendlng
buslness lnvesLmenL
governmenL spendlng
neL exporL
oLher macro economlc varlables
MAC8C LCCnCMlC lC8LCAS1lnC
1he maln alm of conducLlng macro economlc
forecasL ls for markeLers Lo be able Lo forecasL
Lhe gross producL whlch ls Lhen used along
wlLh oLher macro envlronmenLal facLors such
as pollLlcal/legal soclal culLural and
Lechnologlcal facLors Lo deLermlne lndusLrlal
sales
2lndusLry sales forecasL
lndusLry sales forecasLlng refers Lo Lhe
deLermlnaLlon of sales forecasL for Lhe whole
lndusLry
sales forecasL for lndlan banklng and flnanclal
lndusLry
sales forecasL for lndlan car marklng lndusLry
sales forecasL for lndlan moblle
LelecommunlcaLlon lndusLry
car manufacLurlng lndusLry ln lndla
uLMAnu lC8LCAS1
lrom lndusLry sales forecasLlng MA8kL1L8
derlves sales forecasL by assumlng LhaL lL wlll
wln a cerLaln markeL share
Sales forecasL can be done lnLernally or hlrlng
speclallzed flrms Lo conducL Lhe forecasLlng on
your behalf
MarkeLlng consulLanLs
MarkeLlng research flrms
Sales consulLanLs
uemand forecasL
All sales forecasLs are bullL on one of Lhree
lnformaLlon basls
whaL cusLomers say abouL Lhe producLs offerlng
or company
whaL Lhey have done
whaL cusLomers do
JPA1 CuS1CML8S SA?
1Survey of buyers' oplnlon
8uyers should be asked on Lhelr lnLenLlons Loward
purchaslng a parLlcular producL or slmply Lhelr
lnLenLlon Lo deal wlLh a cerLaln company
purchase probablllLy scale ls used Lo deLermlne
cusLomers oplnlon
LC do you lnLend Lo purchase a moblle phone ln
Lhe nexL slx monLhs?
000 020 040 060 080 100
no sllghL falr good hlgh cerLaln
JPA1 CuS1CML8S SA?
2 ComposlLe of sales people oplnlon
1hls meLhod lnvolves asklng sales
represenLaLlves on Lhelr esLlmaLes on sales
volume
lncase of reLalllng sales people are asked Lo
glve Lhelr oplnlon
lncase of wholesallng reLallers are asked Lo glve
Lhelr oplnlon
JPA1 CuS1CML8S SA?
3 LxperL oplnlon
1he use of research consulLanLs markeLlng
consulLanLs dealers suppllers and Lrade
assoclaLlons
chamber of commerce
JPA1 CuS1CML8S PAvL uCnL
AS1 SALLS AnAL?SlS
1hls lnvolves Lhe usage of pasL sales Lo deLermlne
fuLure buslness
1lme serles analysls conslsLs of breaklng down
pasL Llme serles lnLo four componenLs (Lrend
cycle seasonal erraLlc)
LxponenLlal smooLhlngconslsLs of pro[ecLlng
fuLure sales by comblnlng an average of pasL
sales and Lhe mosL recenL sales
SLaLlsLlcal demand analysls measurlng Lhe lmpacL
level of each of a seL of casual facLors (lncome
markeLlng expendlLure prlce)
uaLa warehouslng and mlnlng
lncreaslngly companles are lnvolved ln
collecLlng analyzlng and uslng of cusLomers
lnformaLlon Lo achleve compeLlLlve advanLage
over compeLlLlon
uaLa warehouslng means recordlng and
keeplng valuable cusLomer's lnformaLlon LhaL
could easlly mlned by a flrm Lo geL an lnslghL
abouL new cusLomer's Lrend ln Lhe markeL
place
uaLa warehouslng and mlnlng
uslng sLaLlsLlcal models and Lechnlques
managers can garner useful lnformaLlon for
declslon maklng
MosL useful sLaLlsLlcal models are
CPAlu Alu MuL1lLL 8LC88LSlCn MCuLLS
LCClS1lC MCuLLS lAC1C8 AnAL?SlS C8CSS
1A8uLA1lCn 8lM uLClSlCn 18LLS LlnLA8
8LC8LSSlCn MCuLLSeLc
ulSCuSSlCn CuLS1lCnS
ulscuss Lhe lnfluence of Macro envlronmenLal
facLors on Lhe performance of any lndlan
buslness organlsaLlon
ulscuss Lhe lnfluence of mlcro envlronmenLal
facLors and organlzaLlonal facLors on
effecLlveness of markeLlng sLraLegles ln any
lndlan buslness organlsaLlon
Module LhreeundersLandlng
cusLomers
8ulldlng and maxlmlzlng cusLomer's value
SaLlsfacLlon and loyalLy
ConsLrucLlng a cusLomer daLabase
Analyzlng consumer markeLs
8uyer declslon process and Lheorles of consumer declslon
maklng
Measurlng cusLomer saLlsfacLlon
C8M CusLomer proflLablllLy cusLomer equlLy CLv vALuL
CPAln
MarkeLlng ls abouL creaLlng cusLomer
value
roducL beneflLs
Servlce beneflLs
8elaLlonal beneflLs
lmage beneflLs
MoneLary cosLs
1lme cosLs
Lnergy cosLs
sychologlcal cosLs
Customer
value
Perceived
benefits
Perceived
sacrifice
!ositive Negative
8ulLulnC Anu MAxlMlZlnC
CuS1CML8'S vALuL
CusLomer value assessmenL
uellverlng value Lo cusLomers
CapLure value from cusLomer
Measurlng cusLomer saLlsfacLlon
CreaLlng value Lo cusLomer
ercelved beneflLs
ercelved cosLs
ercelved value ls when Lhe percelved cosLs of
acqulrlng a producL/servlce falls shorL of
percelved beneflLs on Lhe same
uellverlng value Lo cusLomers
ln dellverlng value lmporLanL aspecLs have Lo
be well known ln advance
va|ue roos|t|onconslsLs of Lhe whole clusLer
of beneflLs Lhe company promlses Lo dellver lL
ls more Lhan Lhe core poslLlonlng of Lhe
offerlngs usablllLy of Lhe producL durablllLy
safeLy eLc
va|ue de||very systemall Lhe experlence Lhe
cusLomer wlll have on Lhe way Lo obLaln Lhe
producL
1oLal cusLomer saLlsfacLlon
Je normally deflne saLlsfacLlon as person's
feellng of pleasure or dlsappolnLmenL resulLed
from comparlng percelved performance and
expecLaLlon
LxpecLaLlonpercepLlon
saLlsfacLlon leads Lo loyalLy whlch ls a maln
concern of each and every markeLer
Measurlng saLlsfacLlon
erlodlc survey
urchase probablllLy survey
CusLomer loss raLe surveydefecLlon raLe
LxperL oplnlon survey
uealers
Sales people
lndla cusLomer saLlsfacLlon lndex (CSl)
Maxlmlzlng cusLomer llfe Llme
value (CLv)
Customer rof|tab|||ty markeLlng ls Lhe arL of
aLLracLlng and keeplng besL cusLomers
Companles always looses money on some of
Lhelr cusLomers
use 20/80 rule
CalculaLe Lhe llfeLlme value of your cusLomer
as markeLlng ls movlng from LransacLlonal Lo
relaLlonshlp managemenL wlLh good
cusLomers
CusLomer relaLlonshlp
managemenL (C8M)
A118AC1lnC Anu 8L1AlnlnC CuS1CML8S
8u?L8 8LPAvlCu8
1he lmporLanL aspecL ln markeLlng
managemenL ls Lo undersLand whaL lnfluences
cusLomer behavlour ln buylng goods or
servlces
1he role of markeLer Lherefore ls Lo Lry Lo flL
hlmself/herself lnLo Lhe shoes of Lhe
cusLomers wlLh a vlew of explorlng whaL are
exacLly Lhe needs/wanLs of Lhe cusLomers
8uylng behavlour ls caLegorlzed lnLo consumer
buylng behavlour and organlzaLlonal buylng
behavlour
8u?L8 8LPAvlCu8
Consumer or Organisational products
Why was the product purchased ?
For personal or
household use
For use in the operation of a
business or organisation.
%o manufacture other products
For resale to others
ORGANISATIONA
!RODUCT
CONSUMER
!RODUCT
unuL8S1AnulnC CuS1CML8S
5
&nderstanding customers
How do
they buy?
What are
their choice
criteria?
Customers
Who is
important?
Where do
they buy?
When do
they buy?
lAC1C8S lnlLuLnClnC 8u?lnC
8LPAvlCu8

nfluences on consumer
purchasing behaviour
information
processing
motivation
beIiefs and
attitudes
personaIity
IifestyIe
IifecycIe
cuIture
sociaI cIass
geodemo-
graphics
reference
groups
!ersonaI
infIuences
SociaI
infIuences
Consumer
The buying
situation
SCClAL lAC1C8S
5ocio/ c/oss soclal classes are relaLlvely
homogeneous and endurlng dlvlslons ln a
socleLy whlch are hlerarchlcally ordered and
whose members share slmllar values
lnLeresLs and behavlour Soclal classes do noL
reflecL lncome alone buL also oLher lndlcaLors
such as occupaLlon educaLlon and area of
resldence
SCClAL lAC1C8S
Soclal classes have several characLerlsLlcs
ersons wlLhln each soclal class Lend Lo behave more allke
Lhan persons from Lwo dlfferenL soclal classes
ersons are percelved as occupylng lnferlor or superlor
poslLlons accordlng Lo Lhelr soclal class
A person's soclal class ls lndlcaLed by a clusLer for varlables
(llke lncome occupaLlon and wealLh educaLlon and value
orlenLaLlon) raLher Lhan by any slngle varlable
SCClAL lAC1C8S
keference qroups a person's reference groups
conslsL of all Lhe groups LhaL have a dlrecL
(faceLoface) or lndlrecL lnfluence on Lhe
person's aLLlLudes or behavlour eople are
slgnlflcanLly lnfluenced by Lhelr reference
groups ln aL leasL Lhree ways
8LlL8LnCL C8Cu
1 8eference groups expose an lndlvldual Lo new
behavlors and llfesLyles
21hey also lnfluence Lhe person's aLLlLudes and
selfconcepL
3 1hey creaLe pressures for conformlLy LhaL may
affecL Lhe person's acLual producL and brand
cholces
lAMlL?
the fam||y ls Lhe mosL lmporLanL consumerbuylng
organlzaLlon ln socleLy lamlly members consLlLuLe Lhe mosL
lnfluenLlal prlmary reference group MarkeLers are lnLeresLed
ln Lhe roles and relaLlve lnfluence of Lhe husband wlfe and
chlldren ln Lhe purchase of a large varleLy of producLs and
servlces MarkeLers need Lo deLermlne whlch member
normally has Lhe greaLer lnfluence ln chooslng varlous
producLs
8CLLS Anu S1A1uSLS
ko/es ond 5totuses a person parLlclpaLes ln
many groups LhroughouL llfe (famlly clubs
and organlzaLlons) 1he persons poslLlon ln
each group can be deflned ln Lerms of role
and sLaLus A role conslsLs of Lhe acLlvlLles LhaL
a person ls expecLed Lo perform
L8SCnAL lAC1C8S
4qe ond 5toqe in the /ife cyc/e people buy dlfferenL goods
and servlces over Lhelr llfeLlme 1hey eaL baby food ln Lhe
early years mosL foods ln Lhe growlng and maLure years and
speclal dleLs ln Lhe laLer years eoples LasLe ln cloLhes
furnlLure and recreaLlon ls also age relaLed
ConsumpLlon ls also shaped by Lhe famlly llfecycle MarkeLers
ofLen choose llfecycle groups as Lhelr LargeL markeL
LllL S1?LL
Lifesty/e eople comlng from Lhe same
subculLure soclal class and occupaLlon may
lead qulLe dlfferenL llfesLyles
A petsoos llfestyle ls tbe petsoos potteto of
llvloq lo tbe wotlJ os exptesseJ lo tbe petsoos
octlvltles lotetests ooJ oploloos llfestyle
potttoys tbe wbole petsoo lotetoctloq wltb bls
ot bet eovltoomeot
LCCnCMlC lAC1C8S
conomic circumstonces producL cholce ls greaLly affecLed by
ones economlc clrcumsLances eoples economlc
clrcumsLances conslsL of Lhelr lncome MarkeLers of lncome
senslLlve goods pay consLanL aLLenLlon Lo Lrends ln personal
lncome savlngs and lnLeresLs raLes lf economlc lndlcaLors
polnL Lo a recesslon markeLers can Lake sLeps Lo redeslgn
reposlLlon and reprlse Lhelr producLs so Lhey conLlnue Lo
offer value Lo LargeL cusLomers
1?LS Cl 8u?lnC 8LPAvlCu8
1 comp/ex buyinq behoviour consumers engage ln
complex buylng behavlour when Lhey are hlghly lnvolved ln a
purchase and aware of slgnlflcanL dlfferences among brands
1hls ls usually Lhe case when Lhe producL ls expenslve boughL
lnfrequenLly rlsky and hlghly selfexpresslve 1yplcally Lhe
consumer does noL know much abouL Lhe producL caLegory
eg a person buylng a personal compuLer
8u?lnC 8LPAvlCu8
uissononce keducinq buyer behoviour
someLlmes Lhe consumer ls hlghly lnvolved ln
a purchase buL sees llLLle dlfference ln Lhe
brands 1he hlgh lnvolvemenL ls based on Lhe
facL Lhe purchase ls expenslve lnfrequenL and
rlsky ln Lhls case Lhe buyer wlll shop around
Lo learn whaL ls avallable buL wlll buy qulckly
perhaps respondlng prlmarlly Lo a good prlce
or Lo purchase convenlence
8u?lnC 8LPAvlCu8
nobituo/ 8uyinq behoviour many producLs are boughL under
condlLlons of low consumer lnvolvemenL and Lhe absence of
slgnlflcanL brand dlfferences eg salL sugar Consumers have
llLLle lnvolvemenL ln Lhls producL caLegory 1hey go Lo Lhe
sLore and reach for Lhe brand 1here ls good evldence LhaL
consumers have lowlnvolvemenL wlLh mosL lowcosL
frequenLly purchased producLs AfLer purchase Lhey may noL
even evaluaLe Lhe cholce because Lhey are noL hlghly lnvolved
wlLh Lhe producL
8u?lnC 8LPAvlCu8
Ioriety seekinq buyinq behoviour some buylng
slLuaLlons are characLerlzed by low consumer lnvolvemenL buL
slgnlflcanL brand dlfferences Pere consumers ofLen do a loL
of brand swlLchlng eg sweeLs and cookles 1he consumer
evaluaLes Lhe producL durlng consumpLlon 8uL nexL Llme Lhe
consumer may reach for anoLher brand ouL of boredom or
wlsh for a dlfferenL LasLe 8rand swlLchlng occurs for Lhe sake
of varleLy raLher Lhan dlssaLlsfacLlon
CCnSuML8 uLClSlCn MAklnC
8CCLSS

%he consumer
decision-making process
Need
recognition/probIem
awareness
Information
search
EvaIuation
Of aIternatives
!urchase
!ost-purchase
evaIuation of
aIternatives