Professional Documents
Culture Documents
Marketing Concepts
Needs, Wants, Demands
Needs Wants Demands
What Deprivation of Specific satisfiers of deeper Specific Wants for
basic, needs products Wants +
satisfaction Wants are many purchasing power
Existing, few Ability & willingness
Influencer Natural, not Shaped by Social-family, Shaped by status,
s created friends, Aspirations
Peers or Institutional-
Promotion
Instances Food, clothing, Needs food-Wants Mcdonalds Needs Car/TV, Wants
belonging Needs clothes-Wants Allen Luxury Sedan/flat, As
Solly willing + able,
Demand Benz/Plasma TV
Marketers Existing, Influence wants, Influence demand by
minimum Affordable&available Bank making product
influence, loan, EMls attractive/aspirational,
House 3 Bed Room Status Duplex /
Bungalow
Consumer-One who consumes, but may or may not have purchased- Kid
Marketing
Marketer Mix + Strategy Brand Value Customer
• Mission: Create a difference between company’s & competitors offering
on a/an attribute/s important to customers, to provide value, Scope.
• Identifying, creating, managing demand to provide value to a customer for
a profit – Kotler
• Mgmt process that identifies, anticipates, satisfies customer requirements
profitability – CIM
• The right product, in the right place, at the right time, at the right price –
Adcock
• Marshalling organizational resources to meet changing needs of the
customer – Palmer
• Marketing is far too important to leave to the marketing department”,
David Packard (HP) 1950
• Concept- Satisfaction of the Customer & their needs, focus of business
activities. IBM
• Philosophy- Owned by everyone from within the organization
• Marketing is not only much broader than selling, but not a specialized
activity at all. Marketing encompasses the entire business. The whole
business seen from the point of view of the customer. Concern &
responsibility for marketing must therefore permeate all areas of the
enterprise. A business has only 2 basic functions that produce result,
marketing and innovation, the rest are all costs – Peter Drucker
• “if marketing is seminally about anything, it is about .. differentiating what
you do and how you operate. All else id=s derivative of that and only that.
“Theodore Levitt 1986”
• Holistic marketing: From product to customer focus, from selling
products to satisfying customers, visualizing broader ways to serve
customers and assess how all departments affect customers satisfaction-
delivery, service, performance
• Reserve marketing: Customer initiatives help design products marketing
mix – PCs, Travel
• Experiential marketing: Customer experience/ simulate product before
buying foods, CDs
Organizational Orientation
Production- PSUs
Product- Infosys
Selling- Sansui
Marketing- Hutch
Finance- SBI
Service- ICICI
Marketing Environment
M8 +C5 + PESTND (Case – Mobile Industry)
Surrounds & impacts the organization, 3 key perspectives- Macro, Micro and
Internal environments.
Environment
PEST ND
Political Factors
• Huge, influence policy & regulations and spending power of customers
• Government- VAT, WTO-GATT, Taxation, Reservations
Economic Factors
• Economy – Sensex, Forex, Interest rates, Inflation, Employment level, Per
Capita, GDP,
Sociocultural Factors
• Ethnicity, local factors and issues, environmental issues- Bandra- Worli
Sealink
• Attitudes to foreign products and services- KFC Bangalore, Language
impact
• Cultural and religious factors- Mcdonalds French fries controversy, Nivea in
Latin America
Technological Factors
• Technology- New, accessible, better, cheaper, innovation, investment
intensive- ATM, Net
Natural Factors
• Raw material availability, Pollution, Environment, Monsoon -
Pharmaceuticals
Demographics
• Age profile, Geriatrics, Life expectancy, Mortality, Geography,
Consumption, Psychographics
Competitive Rivalry
• High, where entry is likely/threat of substitute products/suppliers/buyers
control the market FMCG, Pharma, IT
• Pre-emptive eg leader drops price/intensifies promotion to scuttle new
competitor entry
Disadvantages
• Can be very subjective, Not very reliable, Bias steps in
• Two people rarely come-up with the same final version of SWOT
• Use only as a guide
Promotion
• Marketing communication
• Objectives- Sales, attract/retain/covert, trial, awareness, remind, reassure
• Retention Levels- reading 10%, listening 20%, Audio-visual 70%; Sight,
Sound, Motion effective. Integrate individuals promotion mix components
for effective communication
Place (distribution/channel/intermediary)
• Set of institutions performing activities to move product from production
to consumption- Bucklin
• Functions- Order Processing, Warehousing, Inventory, Transportation,
Collections
• Ensures- Availability, Visibility (Dikhta hai voh bikhta hai), Movement,
CRM, Feedback
• Width- Trade coverage, Reach- Customer coverage, Depth- Brand
coverage
• Growing impact of convergence- internet, mobile, retail, revolution
Channel Intermediaries
• Distributor (C&F)- Bulk to smaller packs, handle major area, supply to
stockists
• Wholesalers (Stockists)- Resell to retailers, storage, coverage essential
• Others- Commission agents, co-operative (farmers), Indentors (Imports),
agents (magazine)
• Retailers- Strong customer influence, consumption/purchase pattern
insight, service
• Specialty (Sport), Supermarket (Big Bazar) Convenience (Kirana), Factory
Outlets, Warehouse, Direct sellers (Encyclopedia)- D2D, Vending Machine
(Tea, Coffee), co-operative (Apna Bazar, Grahak Peths, Societies), Chain
stores (Monginis)
• Internet (Service)- Channel margins and inventory costs major saving- can
be passed, hence economical, death of distance, geographically disperse
market, niche products reach wider audience, low entry barriers, display
variety & functionality, interactive, Payment Risky, gaining popularity,
delivery costly- Books, CDs, medicine, travel, tourism
• 3rd Party Logistic (AirFreight, GATI)- tremendous scope
Channel Decisions
• Direct or indirect channels/single or multiple channels
• Length of channel
• Types of intermediaries/Number of intermediaries at each level
NMIMS, 2007-08 (Concepts & Environment)