Basics in

MARKETING

DEPARTMENT OF MANAGEMENT SCIENCES,

UNIVERSITY OF PUNE
[PUMBA]
DMS,UoP
 Marketing
• Marketing is an organizational function
and a set of processes for creating,
communicating, and delivering Value to
customers and for managing customer
relationships in ways that benefits the
organization and its stakeholders

• Meeting needs profitably

• Marketing is the art & science of choosing

target markets and getting, keeping and
growing customers through creating,
delivering & communicating superior
customer value
DMS,UoP
 Product Life-cycle

Analyze each and every stage and find the

proper Marketing Mix for all the stages
DMS,UoP
 Product Life-cycle
• Product development - sales are zero, investment
costs are high

• Introduction - profits do not exist, heavy expense of

product introduction

• Growth - rapid market acceptance and increasing

profits

• Maturity - slowdown in sales growth. Profits level-

off

• Decline - sales fall-off and profits drop

DMS,UoP
 SWOT Analysis
STRENGTHS WEAKNESSES
Internal Factors Internal Factors

OPPORTUNITIES THREATS
External Factors External Factors

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 Segmentation

Geographic
Region, City or Metro
Size, Density, Climate
Demographic
Age, Gender, Family size
and Fife cycle, Race,
Occupation, or Income ...

Psychographic
Lifestyle or Personality

Behavioral
Occasions, Benefits,
Uses, or Attitudes
DMS,UoP
 Targeting
• Undifferentiated

Company Entire Market

DMS,UoP
 Targeting
• Differentiated

Segment 1

Company Segment 2

Segment 3

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 Targeting
• Concentrated

Segment 1

Company Segment 2

Segment 3

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 Positioning
• Competitive Promise

• Position itself within the target segment

• How the organization wants their consumers to see

(perceive) their product

• Positioning depends on the competitors positioning

• Perceptual Mapping: Quality v/s Price Graph

DMS,UoP
 Positioning Strategies
• Product Attributes: What are the specific product attributes?

• Benefits: What are the benefits to the customers?

• Usage Occasions: When / how can the product be used?

• Users: Identify a class of users

• Against a Competitor: Positioned directly against a competitor

• Away from a Competitor: Positioned away from competitor

• Product Classes: Compared to different classes of products

DMS,UoP
 The Four P’s Vs. The Four Cs

Marketing
Mix

Place
Product

Convenience
Customer
Solution Price Promotion

Cost Communication
DMS,UoP
 Marketing Mix- Product
• Marketing is not about providing products
or services it is essentially about providing
changing benefits to the changing needs
and demands of the customer
• Product Quality, Design, Features,
Branding, Functionality, Support ,Warranty

DMS,UoP
Three Product Levels

DMS,UoP
 Product Mix

Width
Width-- number
numberof
of
different
differentproduct
product
lines
lines
Consistency

Length
Length --total
total Product
ProductMix
Mix--
number
numberofof brands
brands all
allthe
theproduct
product
within
withinthe
thelines
lines lines
linesoffered
offered

Depth
Depth-- number
number of
of
versions
versionsof
of each
each
brand
brand

DMS,UoP
 Brand Strategies

Product Category
Existing New
Brand Name

Existing
Line Brand
Extension Extension

New
Multibrands New
Brands

DMS,UoP
 Marketing Mix- Price

Penetration

Skimming

Pricing Strategies Competition

Loss leader

Bundle

Psychological

DMS,UoP
Four Introductory Marketing Strategies

Promotion
High Low

Rapid-
Rapid- Slow-
Slow-
High skimming
skimming skimming
skimming
strategy
strategy strategy
strategy
Price
Rapid-
Rapid- Slow-
Slow-
Low penetration
penetration penetration
penetration
strategy
strategy strategy
strategy
DMS,UoP
 Marketing Mix- Place
• Intensive Distribution
• Selective Distribution
• Exclusive Distribution

DMS,UoP
How a Distributor Reduces
The Number of Channel Transactions

1
B. Number of contacts
4 with a distributor
MxC=3+3=6
Store
2 5

6
3

= Manufacturer = Customer = Distributor

DMS,UoP
Why are Wholesalers Used?

Management
Management Selling
Sellingand
and
Services
Services&&Advice
Advice Promoting
Promoting

Market
Market Buying
Buyingand
and
Information
Information Wholesaler Assortment
AssortmentBuilding
Building
Functions
Risk
Risk Bearing
Bearing Bulk
BulkBreaking
Breaking

Financing
Financing Warehousing
Warehousing

Transporting
Transporting
DMS,UoP
Marketing Mix- Promotions

Advertising

Public
Relations

Sales
Promotional Mix Promotion

Personal
Selling

Direct
Mail

Internet/
E-commerce

DMS,UoP
 Push Versus Pull Strategy

Marketing Marketing
activities Interme- activities
Producer diaries End users

Demand Push Strategy

Marketing activities

Demand Interme- Demand

Producer diaries End users

DMS,UoP
Pull Strategy
Channels of Sales Promotions

MANUFACTURER

Trade
Push
Promotions

RETAILER Consumer
Promotions
Retail Pull
Push
Promotions

CONSUMER

DMS,UoP
 Consumer Promotion

Consumer-Promotion Consumer-Promotion Tools

Objectives

Entice
EnticeConsumers
Consumersto to
Try Samples Advertising
Advertising
TryaaNew
NewProduct
Product Samples
Specialties
Lure Specialties
LureCustomers
CustomersAway
Away Coupons
Coupons Patronage
From Patronage
FromCompetitors’
Competitors’Products
Products Patronage
Rewards
Get Rewards
Rewards
GetConsumers
Consumersto to“Load
“LoadUp’
Up’ Cash
CashRefunds
Refunds
on a Mature Product
on a Mature Product Contests
Contests
Hold
Hold&&Reward
Reward Loyal Price
Customers
Loyal PricePacks
Packs Sweepstakes
Customers Sweepstakes
Consumer
ConsumerRelationship
Relationship
Building Premiums
Premiums Games
Games
Building
Point-of-Purchase
Point-of-Purchase
Displays
Displays
DMS,UoP
 Trade Promotions
Trade-Promotion
Trade-Promotion Tools
Objectives
Persuade
PersuadeRetailers
Retailersor
or Price-Offs Premiums
Price-Offs Premiums
Wholesalers
Wholesalersto
toCarry
CarryaaBrand
Brand
Give Allowances
Allowances Patronage
Patronage
Displays
GiveaaBrand
BrandShelf
ShelfSpace
Space Rewards
Rewards
Promote
PromoteaaBrand
Brandin
in Buy-Back
Buy-Back
Advertising Guarantees Discounts
Discounts
Advertising Guarantees
Push Push
PushMoney
Money
PushaaBrand
Brandto
toConsumers
Consumers Free
FreeGoods
Goods
Specialty
Specialty
Advertising
Advertising
Contests
Contests Items
Items

DMS,UoP
 Service Marketing
Intangibility
Intangibility Inseparability
Inseparability
Servicescannot
Services cannot Servicescannot
cannot
beseen,
be seen,tasted,
tasted, Services
felt,heard,
heard,or
or beseparated
be separated
felt, fromtheir
from their
smelledbefore
smelled before providers
purchase
purchase providers

Services
Services

Variability
Variability Perishability
Perishability
Qualityof
Quality of Servicescannot
cannot
servicesdepends
services depends Services
onwho
whoprovides
provides bestored
be storedfor
for
on latersale
later saleor
oruse
use
themand
them andwhen,
when,
where,and
where, andhowhow

DMS,UoP
 Service Marketing
• Marketing Mix – 7 P’s
–4 P’s
• Product, Price, Place, Promotion
–People
–Process
–Physical Evidence

DMS,UoP
 The BCG Growth Share
Matrix
High
Stars Question marks
5
4 2 1
Market 6
growth 3
rate 10%
(in Cash cows Dogs
constant
7 11 12
8
dollars)
9 10 13

Low
10 1 0.1
Relative market share
Source: Adapted from Barry Hedley, “Strategy and the Business Portfolio,” Long Range Planning 10 (February 1977).

DMS,UoP
Cash Flows Across Businesses
in the BCG Portfolio Model
Growth rate (cash use)

Stars Question
High
marks

Cash
Flows

Low Dogs
Cash cows

High Low
Relative market share

Desired direction of business development

DMS,UoP
 Intensive Growth Strategies:
Ansoff’s Product/Market Expansion Grid
Current products
Market penetration strategies Product development
• Increase market share
markets
Current
• Increase product usage
Increase frequency of use
Increase quantity used
New applications
Market development
strategies
markets
• Expand markets for existing
New
products
Geographic expansion
Target new segments
DMS,UoP
New products
strategies
• Product improvements
• Product-line extensions
• New products for same
market
Diversification strategies
• Vertical integration
Forward/backward integration
• Diversification into related bus
(concentric diversification)
• Diversification into unrelated
businesses (conglomerate
diversification)
 Five Forces Determining
Segment Structural Attractiveness
Potential Entrants
(Threat of
Mobility)

Suppliers Industry Buyers

(Supplier power) Competitors (Buyer power)
(Segment rivalry)

Substitutes
(Threats of
substitutes)

DMS,UoP
 New Product Development

Concept Development
Idea Generation Idea Screening
and Testing

Marketing Strategy
& Development Business Analysis Product Development

Test Marketing Commercialisation

DMS,UoP
 Marketing Plan
Executive Summary

SMART Objectives Tactics

------------------------- - Marketing Mix
SWOT Segmentation,
Positioning, Targeting
-Marketing Tools
& Models

Evaluation

DMS,UoP
THANK YOU

A Presentation

DMS,UoP