Introduction To Marketing: Reena Roy Sastra
Introduction To Marketing: Reena Roy Sastra
Introduction To Marketing: Reena Roy Sastra
Reena Roy
SASTRA
What is marketing?
1-5
Core Marketing Concepts
Understanding the Marketplace
and Customer Needs
Instincts. Human nature is full of instincts, such
as hunger, thirst, protection against the forces of
the environment etc.
Needs. They are requirements for basic
satisfaction. Eg: Food, water, clothing, safety,
belonging, esteem
• Needs are not created by marketing, they exist
in human nature.
• Needs are states of deprivation
• Physical—food, clothing, warmth, safety
• Social—belonging and affection
• Individual—knowledge and self-expression
Understanding the Marketplace
and Customer Needs
Wants. They are desires for specific need
satisfiers . They are numerous and may
differ from person to person.
• They are changing by the passage of time.
• They are shaped by the political,
economic, cultural and technological
environment of a society.
• Wants = form human needs take that are
shaped by culture and individual personality
Understanding the Marketplace
and Customer Needs
Demands. They are wants for specific products,
backed by an ability and willingness to acquire them.
• A want is transformed to a demand when backed by
purchasing power
Product. It is anything that can satisfy a need or a
want. It can be a physical good, a service or an idea.
• Every physical good is surrounded by a number of
services.
• In most cases when people buy a physical good,
they buy it for the services that it provides.
• Broad-minded manufacturers focus on the services
that surround their physical goods, not on the
physical good itself
Marketing Offer
Market offerings are some combination of
Products, Service, Information, Experience
• The offer provides the answer or solution to
needs and wants of the customers.
• Marketing myopia is focusing only on existing
wants and losing sight of underlying consumer
needs.
• Exchange is the act of obtaining a desired object
from someone by offering something in return.
• Relationships consist of actions to build and
maintain desirable relationships
Understanding the Marketplace
and Customer Needs
Customers Value. It is the estimate of the consumer
of the extent to which a product can satisfy his/her
needs.
• Consumers can choose from a set of products.
• Every product offers both functional value and
symbolic value.
• Different products provide different levels of value.
• Customers seek value maximization
• Since products are purchased at a cost, customers
usually have to make a tradeoff between value
maximization and ability to buy the right product
Understanding the Marketplace
and Customer Needs
Value (perception)
• 1. Before Purchase
• 2. Expectations
• 3. Customer Perceived Value
Satisfaction
• 1. After purchase
• 2. Customer satisfaction
Understanding the Marketplace
and Customer Needs
• Total customer value - It represents the
aggregation of benefits that a customer
expects from a good, a service or an idea
• Total customer cost - It is the
aggregation of costs (monetary and non-
monetary) that customers have to pay in
order to locate, evaluate, purchase, use
and divest a good, a service or an idea
Understanding the Marketplace
and Customer Needs
• Customer delivered value. It is the
difference between total customer value and
total customer cost.
• Customer satisfaction. It depicts a
customer’s feelings of pleasure or
displeasure, emanating from comparing a
good’s, a service’s or an idea’s actual
performance with his/her pre-purchase
expectations
Understanding the Marketplace
and Customer Needs
Exchange. It is the process of obtaining a
desired product from someone by offering
something in return.
Transaction. It is a process of value trading
between one or two parties.
Monetary transactions: A pays $100 to B, in
order to acquire a desired value.
Barter transactions: Non-monetary
transactions, whereby products are traded for
other products
Marketing Management
Four Ps Four Cs
• Product • Customer solution
• Price • Customer cost
• Place • Convenience
• Promotion • Communication
Building Customer Relationships
• Basic relationship
• Full relationships
• Frequency marketing programs
• Club marketing programs
Building Customer Relationships
Purchased
Distribution
Supplies
And Sales and Profit
and Operations Service
Inbound
Outbound Marketing Margin
Logistics Logistics
1. The Company
2. Suppliers
3. Marketing intermediaries
4. Customers
5. Competitors
6. Publics
The Company’s Microenvironment
1. The Company
6. Publics
6. Publics
1. Demographic environment
2. Economic environment
3. Natural environment
4. Technological environment
5. Political environment
6. Cultural environment
The Company’s Macroenvironment
1. Demographic Environment
Demographic Environment
The Changing Family
Demographic Environment
Geographic Shifts in Population
• Trends include:
• Migratory movements between and within
countries
• Moving from rural to metropolitan areas
• Changes in where people work
• Telecommuting
• Home office
• Divorcing or separating
The Company’s Macroenvironment
Demographic Environment
Changes in the Workforce
Trends include:
• More educated
• More white collar
• More professional
The Company’s Macroenvironment
Demographic Environment
Increasing Diversity
2. Economic Environment
Economic Environment
Changes in Income
Economic Environment
Changes in Income
• Income distribution
• Upper-class consumers
• Middle-class consumers
• Working-class consumers
• Underclass consumers
The Company’s Macroenvironment
Economic Environment
Changes in Consumer Spending Patterns
Political Environment
Changing Government Agency Enforcement
Political Environment
Increased Emphasis on Ethics and Socially Responsible
Actions
6.Cultural Environment
Cultural Environment
Shifts in Secondary Cultural Values
Cultural Environment
Shifts in Secondary Cultural Values
• Uncontrollable
• Reacting and adapting to forces in the environment
• Proactive
• Taking aggressive actions to affect forces in the
environment
• Reactive
• Watching and reacting to forces in the environment
SEGMENTATION AND TARGET
MARKETING
WHAT IS A MARKET?
• An aggregate of people who, as
individuals or organizations, have needs or
wants for products or services and who
have the ability, willingness and authority
to buy
QUALIFIERS
INDIVIDUALS NEEDS PRODUCTS ABILITY
WILLINGNESS
ORGANIZATIONS WANTS SERVICES AUTHORITY
TYPES OF MARKETS?
• CONSUMER: Intend
to consume or
benefit, but not to
make a profit
• ORGANIZATIONAL:
– Resale
– Direct use in
production
– Use in daily operations
MARKET SEGMENTATION
• IDENTIFIABLE
• MEASURABLE
• ACCESSIBLE
• SUBSTANTIAL
• STABLE OR
GROWNG
(USUALLY)
• UNIQUE MARKET
NEEDS
MARKET SEGMENTATION
Harrison Foundry
MUST ALSO AVOID THE
MAJORITY FALICY
• Some marketers
blindly pursue the
largest and most PETITES JUNIORS
SELF ORIENTATION
GO TO VALS2
BEHAVIORAL SEGMENTATION
• BENEFIT
SEGMENTATION •Nutrition, taste, calories,, value to price,
alcohol content, longevity, etc.
• GEOGRAPHIC
• CUSTOMER SIZE
• CUSTOMER TYPE
• PRODUCT USE
• PURCHASE CRITERIA AND APPROACHES
• PURCHASING STRATEGIES
• IMPORTANCE OF THE PURCHASE
• PERSONAL CHARACTERISTICS
Recalling the Kotler Instinct…
• “Positioning is not what you do to a
product, but what you do to a mind of
a prospect”
• “Act of designing the company’s
image to occupy a distinctive place in
the mind of target market that ends in
a successful creation of customer
focused value-proposition”
Positioning for Competitive
Advantage
• Product’s position is the way the product is
defined by consumers on important attributes, or
as the place the product occupies in consumers’
minds relative to competing products.
– Perceptual position maps can help define a brand’s
position relative to competitors.
• Positioning is the act of designing the company’s
offering and image to occupy a distinctive place
in the target market’s mind
Brand Positioning
• Can position brands at any of three levels:
– Product attributes
– Product benefits
– Beliefs and values
• Attribute Positioning
• ..\positioning\1.1ICICI.mpeg
• ..\positioning\1.2Tata.mpeg
• ..\positioning\1.3suzuki.mpeg
• Benefit Positioning (Maggi, Moov).
• ..\positioning\2.1zandubalm.mpeg
• ..\positioning\2.2zandubalm2.mpeg
• ..\positioning\2.3ponds.mpeg
Brand Positioning
• Application Positioning (yatra.com, Zero-B).
• User Positioning (Nokia 1100, Cartoon
Network).
• Competitor Positioning (Coke and Pepsi,
Reliance).
• Product Category Positioning (MRF, Hero
Honda).
• Quality or Price Positioning (Krd rice, Nokia
Prism).
Positioning Errors
• Underpositioning:
– Failing to really position the company at all
e.g. Security Instruments....\Tata Sky.mpeg
• Overpositioning:
– Giving buyers too narrow a picture of the
company e.g. Tanishq....\Tata Safari.MPG
• Confused Positioning:
– Leaving buyers with a confused image of a
company e.g. Dandi salt...\polo3.mpeg
Perceptual mapping
• Perceptual mapping is a graphics
technique used by marketers that attempts
to visually display the perceptions of
customers or potential customers.
• Typically the position of a product,
product line, brand, or company is
displayed relative to their competition.
Perceptual Mapping of
Positions
POSITIONING AND PERCEPTUAL MAPPING
( IN CONSUMER’S MIND RELATIVE TO
ALTERNATIVES)
. ATTRIBUTES
•PRICE AND QUALITY
•USE OR APPLICATION
•PRODUCT USER
•PRODUCT CLASS
•COMPTITOR
•A MIX OF THE ABOVE
HOTELS
Perceptual mapping
Perceptual Map
Hotels
1 Days Inn
2 Embassy Suites
3 Holiday Inn
4 Holiday Express
5 Holidome
6 Homewood Suites
7 Howard Johnson
8 Hyatt