Session 6- Fundamentals of

Marketing

Marketing-Definition

Marketing is the process used to determine what products or services may be of interest to customers, and the strategy to use in sales, communications and business development. It generates the strategy that underlies sales techniques, business communication, and business developments. It is an integrated process through which companies build strong customer relationships and create value for their customers and for themselves.

Marketing is used to identify the customer, satisfy the customer, and keep the customer. With the customer as the focus of its activities, marketing management is one of the major components of business management

OLD MARKETING

PRODUCT

PACKAGING

DISTRIBUTION

CRM

ADVERTISING

CONSUMER

MODERN MARKETING

PRODUCT

PACKAGING

DISTRIBUTION

ADVERTISING

CONSUMER

CRM

Marketing Functions

Environmental Analysis and Marketing Research

Consumer Analysis Product Planning Distribution Planning Price Planning Promotion Planning Broadening the

Organization’s/Individual’s Scope Marketing Management

Problem Identification Research

• Market Potential Research

• Market Share Research• Image Research• Market Characteristics

Research

• Forecasting Research• Business Trends

Research

Marketing Research

A Classification of Marketing Research

Problem Solving Research

•Segmentation Research

•Product Research

•Pricing Research

•Promotion Research

•Distribution Research

Environmental Analysis/ Marketing Research

Exercise

INDIAN PRIEMIER LEAGUE

Indian Premier League

Indian Premier League

4 Ps of Marketing

4 Ps of Marketing

• A marketer’s task is to build a marketing program or plan to achieve the company’s desired objectives.

• The marketing mix is the set of marketing tools the firm uses to pursue its marketing objectives in the market.

• These tools are broadly classified into four groups namely, product, price, place and promotion.

• These are called the 4Ps of marketing.

Product

Product variety Quality Design Features Brand name Packaging Sizes Services Warranties Returns

Price

List price

Discounts

Allowances

Payment period

Credit terms

Place

Channels

Coverage

Assortments

Locations

Inventory

Transport

 

Promotion Sales promotion

Advertising

Sales force

Public relations

Direct marketing

The marketing mix decisions must be made for influencing the trade channels as well as the final customers.

The company prepares an offering mix of products, services and price.

The company utilizes a mix of sales promotion, advertising, sales force, public relations, direct mail, telemarketing and internet to reach the trade channels and target customers.

The firm can change its price, sales force size and advertising expenditures in the short run. It can develop new products and modify its distribution channels only In the long run.

Thus the firm typically makes a fewer period-to-period changes in the short run than in the number of marketing-mix decision variables might suggest.

23

LAW OF FEW

10% INFLUENCE PURCHASING BEHAVIOR OF OTHER 90%

2001

20072005

2004

1999

20062005

Marketing Strategy

If a firm wants success in marketing efforts, it must formulate an appropriate and effective strategy or policy for its products. Marketing Strategy is the techniques which a firm adopts to counteract the marketing changes.

1989

Marketing Mix

Marketing Mix

The Product Mix Strategies. Decisions about packages, design, warranties, Product life cycle and new product development.

The Place or Distribution Mix Strategies. Involves the physical distribution of goods and the selection of marketing channels

Marketing Mix

The Promotion Mix Strategies. Activities relating to personal selling, advertising and sales promotion tools.

The Price Mix Strategies. Method of selling profitable and justifiable prices. Value of money. Involves discount, mark ups, services offered, sales tax, cost of goods sold, etc.

Thank you