4

Modules
M1-Introduction to marketing
M2-Product
M3-Price & Place
M4-Promotion
MARKET
 A market is a place where parties can gather to
facilitate the exchange of goods and services. The
parties involved are usually buyers and sellers.
 The market may be physical, like a retail outlet, where
people meet face-to-face, or virtual, like an online
market, where there is no physical presence or contact
between buyers and sellers.
 INTRODUCTION TO
MARKETING
Marketing
“Satisfying customer needs”
“Meeting needs profitably”
“Generating customer value at a profit”
 “Managing profitable customer
relationships by delivering superior value to
customers”
 WHAT IS MARKETING?
No single correct definition or approach
Common subject matters:
 The ability to satisfy customers,
 The identification of favorable marketing opportunities,
 The need to create an edge over competitors,
 The capacity to make profits to enable a viable future for the
organization,
 The use of resources to maximize a business’ market position,
 The aim to increase market share mainly in target markets
 MARKETING PROCESS
Capture
value from
Create value for customers and customers
build customer relationships in return

Capture
Capture
Understand Design a Construct a Build value
valuefrom
from
the customer- marketing profitable customers
customers
marketplace driven program that relationships to
tocreate
create
and customer marketing delivers and create profits
profitsand
and
needs&wants strategy superior customer customer
customer
value delight quality
quality
MARKETING DEFINED AS...
Process by which individuals and groups obtain
what they need and want through creating and
exchanging products and value with others.
Simply put: Marketing is the delivery of customer satisfaction at a profit.
MORE DEFINITIONS OF
MARKETING
 A social and managerial process by which individuals and
groups obtain what they need and want through creating,
offering and exchanging products and services of value with
others.

 The management process responsible for identifying,

anticipating and satisfying customer requirements profitably.

 Marketing consists of individual and organizational activities that

facilitate and enhance satisfying exchange relationships in a
dynamic environment through the creation, servicing, distribution,
promotion and pricing of goods, services and ideas
 NATURE OF
MARKETING
1. Customer-Centric: Marketing revolves around understanding and satisfying customer needs
and wants. It's about creating value for customers and building relationships with them.
2. Holistic Approach: Marketing involves a wide range of activities, including market research,
product development, pricing, promotion, and distribution. It's a holistic approach that
encompasses the entire customer experience.
3. Dynamic and Evolving: The marketing landscape is constantly changing due to shifts in
technology, consumer behavior, and market trends. Marketers need to adapt and innovate to stay
competitive.
4. Two-Way Communication: Marketing is not just about sending messages to customers; it's
also about listening to their feedback and adapting strategies accordingly. It's a two-way
communication process.
5. Profit-Oriented: While marketing focuses on customer satisfaction, its ultimate goal is to
generate profit for the organization. It aims to create a balance between customer value and
company profitability.
 IMPORTANCE OF
MARKETING
1. Customer Satisfaction: Marketing identifies and meets customer needs, leading
to higher levels of customer satisfaction. Satisfied customers are more likely to
become loyal and repeat buyers.
2. Business Growth: Effective marketing strategies can lead to increased sales and
market share, contributing to business growth and profitability.
3. Brand Building: Marketing helps in creating and maintaining a strong brand
identity, which can differentiate a company's products or services in a competitive
market.
4. Innovation: Marketing research and analysis provide insights into changing
customer preferences and market trends, driving product and service innovation.
5. Competitive Advantage: Marketing strategies can give a company a competitive
edge by identifying unique selling propositions and positioning products or
services effectively.
CORE CONCEPTS OF
MARKETING
Needs, wants,
and demands
Markets
Products
and services

Exchange,
transactions,
Value and
and relationships
satisfaction
CORE CONCEPTS OF
MARKETING Need
 Basic human requirements
Needs, wants, and demands  State of felt deprivation
 Example: Need food
Marketing offers: including Wants
products, services and  Needs directed to specific objects
experiences  The form of needs as shaped by culture
and the individual preferences, tastes, and
Value and satisfaction influences.
 Example: Want a Mac Book
Exchange, transactions and Demands
relationships  Wants which are backed by buying power.
 Willingness and ability to pay for a
Markets particular product or service at a given
price and time.
CORE CONCEPTS OF
MARKETING
Needs, wants, and demands Marketing offering
 Combination of products,
Marketing offers: including services, information or
products, services and experiences that satisfy a need or
experiences want
 Offer may include services,
Value and satisfaction activities, people, places,
Exchange, transactions and information or ideas
relationships
Markets
CORE CONCEPTS OF
MARKETING
Products
Anything that can be Offered to a Market to Satisfy a Need or Want

Experiences
Experiences Persons
Persons Places
Places

Organizations
Organizations Information
Information Ideas
Ideas

Services
Activities or Benefits Offered for Sale That Are Essentially
Intangible and Don’t Result in the Ownership of Anything
CORE CONCEPTS OF
MARKETING
Value
Needs, wants, and demands  Customers form expectations
Marketing offers: including regarding value
 Marketers must deliver value to
products, services and
consumers
experiences
Value and satisfaction Satisfaction
 A satisfied customer will buy again
Exchange, transactions and and tell others about their good
relationships experience

Markets
CORE CONCEPTS OF
MARKETING

Value Gained From Owning a Product and

Costs of Obtaining the Product is
“Customer Value”

Product’s Perceived Performance in Delivering Value

Relative to Buyer’s Expectations is
“Customer Satisfaction”

Total Quality Management Involves Improving the Quality

of Products, Services, and Marketing Processes
CORE CONCEPTS OF
MARKETING
Needs, wants, and demands Exchange
 The act of obtaining a desired object
Marketing offers: including from someone by offering something
products, services and in return
experiences Transaction
 Trade of values between two or more
Value and satisfaction parties
Exchange, transactions and Relationships are built through
relationships delivering value and satisfaction
 Marketing network cconsists of the
Markets ccompany and all its supporting
sstakeholders
CORE CONCEPTS OF
MARKETING
Needs, wants, and demands Market
 Set of actual and potential
Marketing offers: including
buyers of a product
products, services and
 Marketers seek buyers that are
experiences profitable
Value and satisfaction
Exchange, transactions and
relationships
Markets
 SIMPLE MARKETING SYSTEM
Communication

Products/services
Industry Market
(a collection (a collection
of sellers) Money of Buyers)

Information
EVOLUTION OF MARKETING
ORIENTATIONS/
PHILOSOPHY
EVOLUTION OF MARKETING
THOUGHT
Production Era (1850s-1920s)
 Industrial revolution; mass production
 Few products and little competition

Sales Era (1920s-1950s)

 The focus was on personal selling and advertising
 Sales seen as the major means for increasing profits

Mktg Era (1950s-present)

 Customer orientation replaced the “hard sell” of the sales-led era
 Determination of the needs and wants of customers before introducing
products or services
EVOLUTION OF MARKETING
THOUGHT
Relationship Marketing Era: 1990s-
 Marketing era has recently shifted from being “transaction-
based” to focusing on “relationships”
 The argument traditional marketing practices focused on
attracting new customers rather than retaining existing
ones.
 It is equally important to hang on to existing customers so
that they become repeat buyers and long term loyal
customers.
“customer relationship management”
 MARKETING
CONCEPTS/ORIENTATION
S/
PHILOSOPHY
 Production Concept
 Product Concept
 Selling Concept
 Marketing Concept
 Societal Marketing Concept
 Holistic Concept
PRODUCTION CONCEPT
Focus: Emphasizes efficient production and
distribution.
Key Belief: Consumers will favor products that are
widely available and affordable.
Characteristics: Companies focus on maximizing
production efficiency and reducing costs. Limited
emphasis on understanding customer needs or
preferences.
PRODUCTION
ORIENTATION
 PRODUCT CONCEPT
Focus: Concentrates on product quality, features, and
innovation.
Key Belief: High-quality products will automatically
attract customers.
Characteristics: Companies continuously improve
their products, assuming that superior features will
lead to customer loyalty and demand.
 SELLING CONCEPT
Focus: Prioritizes aggressive sales and promotional
efforts.
Key Belief: Products or services must be aggressively
promoted to generate sales.
Characteristics: Companies use high-pressure sales
tactics and extensive advertising to sell products, often
without focusing on long-term customer relationships.
The aim is “to sell what they make” rather than “make what
the market wants.”
Short-term profits are more important (customer
dissatisfaction may occur).
SELLING/SALES
ORIENTATION
MARKETING
ORIENTIATION
Focus: Centers on understanding and meeting
customer needs and wants.
Key Belief: Customer satisfaction is the key to
success, and all marketing activities should revolve
around customer needs.
Characteristics: Companies actively engage in
market research, customer feedback, and tailoring
products and services to meet customer demands.
MARKETING
ORIENTIATION
SOCIETAL MARKETING
CONCEPT
Focus: Balances customer satisfaction with societal
well-being.
Key Belief: Marketing efforts should consider not
only customer needs but also broader societal and
environmental concerns.
Characteristics: Companies aim to address social
and environmental issues while satisfying customer
needs. They may engage in socially responsible
practices and support charitable causes.
 SOCIETAL MARKETING
CONCEPT
Society
(Human Welfare)

Societal
Marketing
Concept

Consumers Company
(Want Satisfaction) (Profits)
SOCIETAL MARKETING
CONCEPT
HOLISTIC MARKETING
ORIENTIATION
Focus: Integrates all marketing functions and
emphasizes long-term customer relationships.
Key Belief: Successful marketing requires a holistic
approach, incorporating internal and external
stakeholders and aligning all marketing activities.
Characteristics: Companies consider the "4Ps"
(Product, Price, Place, Promotion) along with other
factors such as people, processes, and partnerships to
create a seamless customer experience.
HOLISTIC MARKETING
ORIENTIATION
 COMPANY ORIENTATIONS
TOWARDS THE
MARKETPLACE
Production
Production Concept
Concept

Product
Product Concept
Concept

Selling
Selling Concept
Concept

Marketing
Marketing Concept
Concept
MARKETING MIX
MARKETING MIX
 The concept of the marketing mix, "Four Ps" was
popularized by Professor Neil H. Borden, but it was
originally formulated by E. Jerome McCarthy in the
1960s.

 McCarthy's marketing mix framework was introduced

in his book "Basic Marketing: A Managerial
Approach.“

 Marketing Mix is a set of controllable variables the

company puts together to satisfy its target market(s).
MARKETING MIX - THE 4 P’S
PRODUCT
 A product is a commodity, produced or built to satisfy
the need of an individual or a group. The product can
be intangible or tangible as it can be in the form of
services or goods.
 Product variety, quality, design, features, brand name,
packaging, sizes, services, warranties, returns
HINDUSTAN
UNILEVER LIMITED
HOME CARE
• Rs.13,642 crores segmental revenue
• HUL is the No.1 Laundry company in India
PRICE

The price of the product is basically the amount that a

customer pays for to enjoy it.
List price, discounts, allowances, payment period, credit
terms
PROMOTION

 Promotion is a marketing communication process that

helps the company to publicize the product and its
features to the public, that helps to grab the attention
of the customers and influence them to buy the
product.
 Sales promotion, advertising, sales force, public
relations, direct marketing
ADS (PRINT & VIDEO)
"Daag Acche Hain“
"Dirt is Good, Surf Excel Hai Na"
#HAARKOHARAO –
DEFEAT THE DEFEAT
PLACE
 Placement or distribution is a very important part of the
marketing mix strategy. We should position and distribute our
product in a place that is easily accessible to potential
buyers/customers.
 Channels, coverage, assortments, locations, inventory, transport
HUL Network is responsible for regulating the direct selling network
which has 6.3 million retail outlets, 30 factories and 2500
stockists that besides urban also serve the rural market diligently.
Surf Excel products are also available through e-commerce websites
like Amazon and Flipkart.
 MARKETING MIX - THE 4 P’S VS THE 4
CS

Marketing
Mix

Product Place

Convenience
Customer
Price
Solution Promotion

Customer
Cost Communication
 MARKETING
ENVIRONMENT
 MARKETING
ENVIRONMENT
 The marketing environment refers to all internal and
external factors, which directly or indirectly influence the
organization's decisions related to marketing activities.
 Internal factors are within the control of an organization;
whereas, external factors do not fall within its control.
 According to Philip Kotler, marketing environment refers to
“external factors and forces that affect the company’s ability
to develop and maintain successful transactions and
relationships with its target customers”.
MARKETING
ENVIRONMENT
Microenvironment and Macro environments
 The marketing environment consists of
▪ Microenvironment and
▪ Macro environments.
 The microenvironment implies the factors and forces in the
immediate environment which affect the company’s ability
to serve its market. The factors are suppliers,
Intermediaries, customers, competitors, and publics.
 For Example, HUL
https://hul-performance-highlights.hul.co.in/performance-highl
ights-fy-2022-2023/index.html
 consumers across India.

50+ brands, spanning 16 FMCG categories, which are a

part of everyday life of millions of consumers across India.
MICRO ENVIRONMENT
Forces Elements
Company HUL
Suppliers/ 50+
Partners Farmers, Small companies for
resources
Intermediaries 9 millions retail outlets across India
E-commerce (Amazon, Flipkart) and
D2C (Ushop) platforms
Competitors P&G, Nestle, Patanjali
Publics Society
Customers End users
MACRO ENVIRONMENT

 The macro environments consist of the larger social

forces that affect the whole microenvironment-
demographic, economic, natural, technological,
political-legal, and socio-cultural forces.
MACRO ENVIRONMENT
The Company’s Macroenvironment
Demographic Environment
• Demography is the study of human populations in terms of size,
density, location, age, gender, race, occupation, and other statistics.
• Demographic environment is important because it involves people,
and people make up markets.
• Demographic trends include
• Age structure (Baby boomers, Gen X, Y, Z)
• Family Structure (Joint and Nuclear)
• Geographic Population Shifts (Moving from rural to metropolitan areas)
• Educational Characteristics (Well educated and Professional)
• Population Diversity (Ethnicity)
Example:
A rise in the number of millennials and Gen Z in the
population might increase the demand for tech products,
sustainable goods, or online shopping experiences.

Smart watch, Organic foods, and Amazon

Economic Environment
• Economic environment consists of factors that affect consumer
purchasing power and spending patterns.
 Changes in Income
 Income distribution
 Upper-class consumers
 Middle-class consumers
 Working-class consumers
 Underclass consumers
 Changing consumer spending pattern
Example: During an economic recession, luxury
brands might see a decline in sales as consumers
prioritize essential goods and cut back on
discretionary spending.

COVID
High price of essential goods-
Natural Environment
• Natural environment involves the natural resources
that are needed as inputs by marketers or that are
affected by marketing activities.
• Trends
• Shortages of raw materials
• Increased pollution
• Increased government intervention
• Environmentally sustainable strategies
• Green marketing
Example: Companies like ID emphasize sustainable
sourcing and environmental responsibility due to
increasing concerns about climate change and resource
depletion.
Avoid plastic
Sustainable packaging
Technological Environment
• Forces that create new technologies, creating new product
and market opportunities. Most dramatic force in changing
the marketplace with many positive and negative effects
• Provides new markets and new opportunities
 Internet
 ICT
 AI
Example: The rise of smartphones led to a boom in mobile app
businesses, from games to shopping to financial services.
Political Environment
 Political environment consists of laws,
government agencies, and pressure groups that
influence or limit various organizations and
individuals in a given society.
• Increasing legislation to:
• Protect companies
• Protect consumers
• Protect the interests of society
Cultural Environment
 The cultural environment consists of institutions
and other forces that affect a society’s basic values,
perceptions, and behaviors.
Example: The increasing global emphasis on
health and wellness has led to a surge in demand for
organic products, fitness services, and wellness apps.
Healthifyme
Headspace
Responding to the Marketing Environment
 Understanding the macro environment is vital for marketers as
it helps in anticipating changes, identifying opportunities, and
ensuring that their strategies align with external conditions.
Views on Responding
• 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
Consumer Behaviour
CONSUMER BEHAVIOUR

 Consumer behavior refers to the study of the processes and

activities that individuals and groups go through when selecting,
purchasing, using, and disposing of products, services, ideas,
or experiences to satisfy their needs and wants.
 It is a multidisciplinary field that encompasses various factors
and influences that shape the choices consumers make in the
marketplace.
 FACTORS INFLUENCING CONSUMER
BEHAVIOR
 Psychological factors
 Social factors
 Cultural factors
 Personal factors
 Economic factors
 FACTORS INFLUENCING CONSUMER
BEHAVIOR
Psychological Factors:
1. Perception: How individuals interpret and make sense of
information from their surroundings, affecting their product
preferences.
2. Motivation: The underlying needs and desires that drive
consumer decision-making and behavior.
3. Attitudes and Beliefs: Consumer attitudes toward products
or brands, are often shaped by past experiences and marketing
efforts.
4. Learning: The acquisition of knowledge and experience
that impacts consumer choices.
Social Factors:
1. Reference Groups: Influential people or groups (family,
friends, colleagues) that serve as benchmarks for consumer
behavior and influence product choices.
2. Social Class: An individual's social and economic status,
affecting their lifestyle, preferences, and brand choices.
3. Culture: Shared values, beliefs, customs, and norms
within a society that shape consumer preferences and choices.
4. Social Influence: The impact of social interactions and
societal trends on consumer decisions.
Cultural Factors:
1. Culture: Cultural values, beliefs, and traditions that
influence what products or services consumers prefer and how
they use them.
2. Subculture: Smaller cultural groups within a larger society
that have distinct values, preferences, and behaviors.
3. Cultural Symbols: Objects or concepts with cultural
significance that can affect consumer choices (e.g., the meaning
of certain colors or symbols in different cultures).
4. Language and Communication Styles: How language and
communication are used in marketing messages to resonate with
specific cultural groups.
Personal Factors:
1. Demographics: Characteristics such as age, gender, income,
education, and family size that segment consumers based on
shared traits.
2. Lifestyle and Interests: An individual's hobbies, interests,
and activities that influence their product choices and brand
preferences.
3. Personality and Self-Concept: An individual's unique
personality traits and self-perception that can shape their product
preferences and brand loyalty.
4. Values and Beliefs: Personal values, ethics, and principles
that guide consumer choices.
Economic Factors:
1. Income and Financial Status: A person's economic
situation, including income, savings, and debt, which impacts
their purchasing power and buying habits.
2. Price Sensitivity: How consumers respond to changes in
product prices and discounts.
3. Economic Conditions: Broader economic factors like
inflation, unemployment, and economic stability can influence
consumer confidence and spending patterns.
4. Consumer Confidence: The level of trust and optimism
consumers have about the economy, which can affect their
willingness to make purchases.
CONSUMER BUYING DECISION
PROCESS
CONSUMER BUYING DECISION
PROCESS
 The consumer buying process, also known as the consumer purchase process is a
step-by-step series of stages that individuals or groups go through when making a
purchasing decision.
 It outlines the sequence of activities and considerations that consumers undertake
before, during, and after a purchase.The consumer buying process typically
consists of several key stages:
1. Problem Recognition:
2. Information Search:
3. Evaluation of Alternatives:
4. Purchase Decision
5. Purchase
6. Post purchase evaluation
7. Post purchase behaviour
1. Problem Recognition: This is the initial stage where a consumer
identifies a need or problem that can be satisfied through a purchase.
This need can arise from internal factors (e.g., hunger, desire for a
new gadget) or external factors (e.g., advertising, peer
recommendations).
2. Information Search: After recognizing a need, consumers seek
information about potential solutions. They gather information from
various sources, including online research, product reviews,
recommendations from friends and family, or personal experiences.
3. Evaluation of Alternatives: In this stage, consumers evaluate
different options based on criteria such as price, quality, brand
reputation, features, and personal preferences. They compare and
contrast products or services to make an informed choice.
4. Purchase Decision: Once consumers have assessed their options,
they make a purchase decision. This decision can be influenced by
factors like product availability, price promotions, and the overall
perceived value.
5. Purchase: The actual acquisition of the chosen product or
service occurs in this stage. Consumers may buy online, in
physical stores, or through other channels, depending on their
preferences.
6. Post-Purchase Evaluation: After the purchase, consumers assess
their satisfaction with the product or service. If the experience meets
or exceeds their expectations, it can lead to brand loyalty and positive
word-of-mouth. If it falls short, it may result in dissatisfaction or
returns.
CONSUMER BUYING
DECISION PROCESS
CONTD.
7. Post-Purchase Behavior: Depending on their post-purchase
evaluation, consumers can engage in several behaviors:
Satisfaction: If satisfied, consumers may become repeat customers
and advocates for the product or brand.
Dissatisfaction: If dissatisfied, consumers may seek refunds, returns,
or express their dissatisfaction through reviews or complaints.
Loyalty: Positive experiences can foster brand loyalty, leading
consumers to choose the same brand repeatedly.
Word-of-Mouth: Satisfied customers may recommend the product
or service to others, influencing their buying decisions.
 STP
Segmentation Targeting Positioning
STP

What is STP?
It is an acronym commonly used in marketing and stands for
Segmentation, Targeting, and Positioning. It represents a three-step
process that businesses and marketers use to effectively market their
products or services to a specific audience.

Segmentation: Segmentation involves dividing a larger,

heterogeneous market into smaller, more homogeneous segments
based on certain shared characteristics. The goal of segmentation is to
identify groups of consumers who are more likely to have similar
needs, preferences, and buying behaviors.
Targeting: Once the market is segmented, the next step is to select one
or more specific segments to target with your marketing efforts.
Targeting involves evaluating the attractiveness of each segment and
choosing the ones that align most closely with your business objectives
and capabilities. The chosen segments are often referred to as the "target
market." Targeting ensures that resources are allocated efficiently and
that marketing messages resonate with the right audience.
Positioning: Positioning is the process of creating a distinct and
favorable perception of your product or brand in the minds of your
target audience relative to competitors. It involves defining and
communicating the unique value proposition of your product or brand to
meet the specific needs and preferences of the chosen target market.
Effective positioning helps your product or brand stand out and resonate
with customers, leading to increased sales and brand loyalty.
MARKET
SEGMENTATION
Market segmentation is the process of dividing a larger
market into smaller, more homogeneous groups of
consumers based on certain criteria. The goal is to better
understand and target specific consumer segments with
tailored marketing strategies.
Bases of Segmentation
Demographic Segmentation
Psychographic Segmentation
Behavioral Segmentation
Geographic Segmentation
BASIS OF SEGMENTATION
Demographic Segmentation: Dividing the market based on demographic
factors such as age, gender, income, education, marital status, and family
size.
Psychographic Segmentation: Segmenting the market based on lifestyle,
values, attitudes, interests, and personality traits. This helps understand
consumer motivations and preferences.
Behavioral Segmentation: Segmentation based on consumer behavior,
including purchasing habits, usage patterns, brand loyalty, and readiness to
buy.
Geographic Segmentation: Dividing the market based on geographical
factors such as location, region, climate, or population density.
TARGETING
 Market targeting, also known as target marketing or
target audience selection, is a critical step in the
marketing process where a business or marketer
identifies and selects specific segments of the overall
market that they intend to focus their marketing efforts.
 This process involves evaluating different market
segments and determining which ones are most likely
to be receptive to a company's products or services.
TARGETING STRATEGIES
Undifferentiated Marketing (Mass Marketing): This approach
involves targeting the entire market with a single marketing mix. It
assumes that the product or service will appeal to a broad range of
consumers. It's often used for products with universal appeal, like
basic food items.
Differentiated Marketing: In this strategy, a business targets
multiple market segments and develops distinct marketing strategies
for each. Each segment receives a unique marketing mix tailored to
its specific needs and preferences. This approach is common when a
company offers products with different features or benefits that
appeal to distinct groups.
Concentrated Marketing (Niche Marketing): Concentrated
marketing focuses on a single, well-defined market segment. This
strategy is used when a business wants to specialize and serve a
narrow, specialized market exceptionally well. It often allows for
higher prices and customer loyalty.
Micromarketing: This strategy involves tailoring marketing efforts
to very small, specific segments, often using personalized marketing
tactics. It's enabled by data-driven approaches and is common in
online advertising and e-commerce.
 BRAND POSITIONING
Philip Kotler defines brand positioning as “the act of
designing the company's offering and image to occupy
a distinctive place in the mind of the target market”.
In simpler words, brand positioning describes how a
brand is different from its competitors and where or how
it should be placed in customers' minds.
POSITIONING
STRATEGIES
Positioning by Specific Product Attributes:
This strategy involves highlighting specific characteristics or features of a
product that make it stand out. For example, a smartphone may be
positioned based on its camera quality or battery life.
Positioning by Benefits:
Companies can emphasize the unique benefits or advantages that their
product offers to customers. This could include positioning a laundry
detergent as environmentally friendly or a fitness product as promoting a
healthier lifestyle.
Positioning for User Category:
Positioning based on user categories targets a particular group of
customers. For instance, a luxury car brand might position itself for
affluent consumers, while a budget airline might target price-conscious
travelers.
POSITIONING
STRATEGIES CONTD..
Positioning for Usage Occasion:
Some products are positioned for specific usage occasions or contexts. For
example, a soft drink may be positioned as a refreshing beverage for
social gatherings or as an energy booster during physical activities.
Positioning Against Another Competitor:
In this strategy, a company positions its product as a direct competitor to
another specific product or brand. This is often used to highlight
advantages or differences between the two. For instance, a detergent
might be positioned as a better stain remover than a competitor's product.
Positioning Against Another Product Class:
Sometimes, a product is positioned by comparing it to an entirely different
product class. This can help create a unique niche. An example is
positioning a hybrid car as an alternative to traditional gasoline-powered
cars.
CASE STUDY
Title: PepsiCo's Sustainable Product Innovation: Meeting Consumer
Needs, Wants, and Demands
Introduction: PepsiCo, one of the world's leading food and beverage
companies, has long been at the forefront of innovation and marketing
strategies to meet the evolving needs, wants, and demands of consumers.
In this case study, we will explore how PepsiCo has navigated the
dynamic consumer landscape by addressing sustainability concerns,
health-conscious preferences, and changing market trends.
Situation: PepsiCo faced several key issues in the early 2010s, including
growing consumer demand for healthier food and beverage options,
increased environmental awareness, and the need to adapt to changing
market dynamics. These challenges prompted PepsiCo to rethink its
product portfolio and marketing strategies to stay competitive and
relevant.
Key Issues:
1. Changing Consumer Preferences: Consumers were becoming increasingly
health-conscious, leading to a decline in sales of sugary carbonated
beverages.
2. Environmental Concerns: Sustainability and eco-friendliness became
important factors in consumer purchasing decisions.
3. Market Competition: Rival companies were introducing innovative
products in response to changing consumer preferences.
4. Brand Loyalty: PepsiCo needed to maintain its loyal customer base while
attracting new customers who sought healthier and sustainable options.
5. Regulatory Landscape: Government regulations on food and beverage
products were becoming more stringent.
 CASE STUDY QUESTIONS
• How did changing consumer preferences for healthier options impact
PepsiCo's product portfolio and marketing strategies?
• What were the key sustainability initiatives undertaken by PepsiCo to
address environmental concerns, and how did they affect consumer
demand?
• How did PepsiCo respond to the competitive landscape and the
introduction of innovative products by rival companies?
• What marketing strategies did PepsiCo employ to maintain brand loyalty
among its existing customer base while attracting health-conscious and
environmentally conscious consumers?
• How did government regulations influence PepsiCo's product
development and marketing decisions?
• What challenges did PepsiCo face in implementing these changes, and
how did the organization overcome them?
• Did PepsiCo's efforts to meet consumer needs, wants, and demands result
in measurable improvements in sales and market share?
 SOLUTION OF THE CASE
STUDY
1. Impact of Changing Consumer Preferences:
PepsiCo responded to the shift in consumer preferences by diversifying its product portfolio. This
included the introduction of healthier beverage options such as low-calorie and sugar-free
variants, as well as expanding its snack offerings to include healthier options like baked chips and
whole-grain snacks.
2. Sustainability Initiatives:
PepsiCo launched several sustainability initiatives, such as reducing water usage, improving
energy efficiency, and implementing eco-friendly packaging. These efforts not only reduced the
company's environmental footprint but also resonated positively with environmentally conscious
consumers.
3. Response to Market Competition:
To stay competitive, PepsiCo closely monitored the market and swiftly adapted to emerging
trends. This involved continuous product innovation and strategic acquisitions of companies
specializing in health-conscious or sustainable products.
4. Marketing Strategies for Brand Loyalty:
PepsiCo employed a two-pronged marketing approach. Firstly, they continued to promote their
classic beverage brands while emphasizing their commitment to sustainability and health-
conscious options. Secondly, they launched targeted marketing campaigns and partnerships to
appeal to consumers seeking healthier and eco-friendly choices.
SOLUTION OF THE CASE
STUDY
5. Government Regulations Influence:
PepsiCo proactively complied with government regulations by reformulating
products to meet new nutritional guidelines and ensuring transparent labeling. They
actively engaged with regulatory bodies to shape policies that aligned with their
sustainability goals.

6. Challenges and Overcoming Them:

Implementing these changes posed challenges, including reformulating products,
securing sustainable sourcing, and educating consumers about new offerings.
PepsiCo overcame these challenges through R&D investments, supply chain
optimization, and robust marketing and communication strategies.

7. Measurable Improvements:
PepsiCo's efforts resulted in tangible improvements, including increased sales of
healthier products, market share gains in specific segments, and enhanced brand
perception. They also saw growth in revenue from sustainable product lines,
demonstrating the effectiveness of their sustainability initiatives.
 SAMPLE QUESTIONS
1. What is the fundamental concept of marketing? 11. Define the consumer buying decision process and
2. Differentiate between needs and wants in the name its stages.
context of consumer behavior. 12. What is market segmentation, and why is it
3. Define demand in marketing. How does it differ important in marketing?
from wants? 13. Name two bases commonly used for market
4. Explain the importance of understanding consumer segmentation.
behavior in marketing. 14. Explain the concept of targeting strategies in
5. Name two marketing management philosophies. marketing.
6. Define the marketing mix and its components. 15. How does positioning differentiate a product or
7. What are the 4Ps of marketing, and how do they brand in the market?
relate to product management? 16. What is the role of promotion in the marketing mix?
8. Describe the macro environment in marketing. 17. Define pricing strategy and its significance in
9. What are the micro-environmental factors that can marketing.
affect a business? 18. How does technology impact the marketing
10. How do cultural factors influence consumer environment?
behavior? 19. Describe the role of social factors in consumer
behavior.
20. What is the significance of post-purchase behavior
for businesses?
 10 MARKS QUESTIONS
1. Compare and contrast the concepts of needs, wants, and demands in marketing. Provide
examples to illustrate the differences.
2. Explain the nature and importance of marketing in today's business environment,
considering its role in creating customer value and generating revenue.
3. Describe the four major marketing management philosophies (production, product, selling,
and societal marketing). Discuss their implications for business strategies.
4. Detail the marketing mix (4Ps) and how each element contributes to a comprehensive
marketing strategy. Provide examples for each element.
5. Analyze the macro-environmental factors that can impact a business, such as economic,
demographic, and technological forces. Explain how businesses can adapt to these
changes.
6. Discuss the micro-environmental factors in marketing, including suppliers, competitors,
and intermediaries. Explain how these factors influence business decisions and strategies.
7. Explore the factors influencing consumer behavior, focusing on psychological, social, and
cultural factors. Provide examples to illustrate their impact.
8. Describe the stages of the consumer buying decision process. Explain how marketers can
influence consumers at each stage to facilitate a purchase.
9. Outline the market segmentation process and discuss the various bases for segmenting
markets. Provide examples to demonstrate effective segmentation strategies.
10. Explain the concept of market positioning in marketing. Discuss the strategies and factors
that businesses should consider when developing a successful positioning strategy. Provide
real-world examples to illustrate your points.