Marketing

WHAT’S MARKETING?

• American Marketing Association definition of

Marketing – the activity, set of institutions and
processes for creating, communicating, delivering, and
exchanging offerings that have value for customers,
clients, partners, and society at large.
 FOCUS of CONTEMPORARY
MARKETING
• In the past: marketing focused on helping
the seller to sell

• Marketing today involves helping the buyer

buy through:
- Websites that help buyers find the best
price, identify product features, and
question sellers. Eg: websites for old cars-
cartrade, carwale, cardekho

- Blogs and social networking sites that

cultivate consumer relationships.
 FOUR ERAS of MARKETING

• Production Era (upto

1920s)

• Selling Era (1920-1960)

• Marketing Concept Era

(1945- 2000)

• Customer Relationship
Era
(from 1990s onwards)
 The PRODUCTION and
SELLING ERAS
• The general
philosophy was
“Produce what you
can because the
market is limitless.”
• Business owners:
farmers, carpenters,
trade workers
• After mass
production, the focus
turned from
production to
The MARKETING CONCEPT ERA
• After World War II, a consumer spending
boom developed. Businesses knew they
needed to be responsive to consumers if
they wanted their business.
• The Marketing Concept includes three
parts:
1. Customer Orientation -- Finding out what
customers want and then providing it.
2. Service Orientation -- Making sure
everyone in an organization is committed
to customer satisfaction.
3. Profit Orientation -- Focusing on the goods
 The CUSTOMER RELATIONSHIP
ERA
• Customer Relationship Management (CRM) -
Learning as much as you can about customers and doing
what you can to satisfy or exceed their expectations.
• Organizations seek to enhance customer satisfaction
building long-term relationships.

https://theacsi.org/industries/manufacturing/cell-phones/

https://theacsi.org/industries/manufacturing/cell-
 SERVICE with a SMILE
Six Steps for Keeping Your Customers Happy

• The cost of acquiring a new customer is 5x

the cost of retaining one. Here’s how to
keep them:
1. Build trust
2. Emphasize the long term
3. Listen
4. Treat your customers like stars
5. Show appreciation
6. Remember employees are
customers too!
 NONPROFIT MARKETING
• Nonprofit marketing tactics include:
- Fund raising
- Public Relations
- Special Campaigns
- Ecological practices
- Changing public opinions and
attitudes
- Increasing organizational
membership
 MARKETING STRATEGIES for
NONPROFITS
• Nonprofit marketing
strategies include:
- Determine the firm’s
goals and objectives
- Focus on long-term
marketing
- Find a competent board
of directors
- Exercise strategic
planning
- Train and develop long-
term volunteers
- Carefully segment the
The marketing mix (The Four
P’s)
The ingredients that go into a marketing program:
product, price, place and promotion.

⮚ Designing a want-
Product Promotion
satisfying product
Target ⮚ Setting a price for the
Market
product
Price Place
⮚ Putting the product in
a place where people
will buy it
⮚ Promoting the product
 Find opportunities
Marketing
process with
Conduct research
the four Ps.
Identify a target market
Design a product to meet the need based on
Product research
Do product testing

Determine a brand name, design a package and

Price set a price
Select a distribution system
Place
Design a promotional
program
Promotion Build a relationship with
 Marketing mix……
DEVELOPING a PRODUCT
• Product - A good, service, or idea that
satisfies a consumer’s want or need.
• Test Marketing - Testing
product concepts among
potential product users
(Target Market: Group(s)
of potential customers
toward which a firm
directs its marketing
mix(es))

• Brand Name - A word,

letter, or a group of words or
letters that differentiates
one seller’s goods from a
 Marketing mix….
PRICING and
PLACING a PRODUCT
• Pricing products depends on many factors:
- Competitors’ prices
- Production costs
- Distribution
- High or low price strategies

• Middlemen are important in place

strategies because getting a product to
consumers is critical.
Marketing mix….Place (Distribution)

Producer

Wholesaler

Retailer

Consumer
Dr. Rosebloom
 Marketing mix….
PROMOTING the PRODUCT
• Promotion - All the techniques sellers use to inform
people about their products and motivate them to purchase
those products.
• Promotion includes:
- Advertising
- Personal selling
- Public relations/publicity
- Word of mouth
- Sales promotions
- Corporate Image
- Exhibition
 Marketing mix….
PERFECT PROMOTION
How to Get Customers to Need Your Product
• Get customers emotional about your
product:
- Make your product “built to love”
- Use emotion-laden advertising
• Be (https://www.youtube.com/watch?
a likeable
v=kvV_PZw0pBk)
salesperson:
- Have confidence
- Be interesting
- Show interest in others
- Be enthusiastic and
respectful
 SEARCHING for
INFORMATION
• Marketing Research --
Analyzing markets to
determine challenges and
opportunities, and finding
the information needed to
make good decisions.
• Research is used to
identify products
consumers have used in
the past and what they
want in the future.
 FOUR STEPS in the MARKETING
RESEARCH PROCESS
1. Defining the problem or opportunity and
determining the present situation.

2. Collecting research data.

3. Analyzing the data.

4. Choosing the best solution and

implementing it.
 DEFINING the PROBLEM or
OPPORTUNITY

• What’s the present

situation?

• What are the alternatives?

• What information is
needed?

• How should the

information be gathered?
 COLLECTING PRIMARY
RESEARCH DATA
• Primary Data - In-depth
information gathered by
marketers from their own
research.

• Telephone, online and mail

surveys, personal interviews,
observations, questionnaires,
letters from customers and
focus groups are ways to
collect primary data.
 FOCUS GROUPS
• Focus Group -- A group of people who meet
under the direction of a discussion leader to
communicate opinions.
COLLECTING SECONDARY RESEARCH DATA
• Secondary Data - Existing data that has previously been
collected by sources like the government.
• Secondary data incurs no
expense and is usually
easily accessible.
• Secondary data does n’t
always provide all the
needed information for
marketers.

• Sources: Govt. &

commercial publications,
Magazines, newspaper,
internal sources, general
sources
 ANALYZING the DATA and
IMPLEMENTING the DECISION
• Marketers must turn data
into useful information.

• Must use their analysis to

plan strategies and make
recommendations.

• Finally, marketers must

evaluate their actions and
determine if further
research is needed.
 KEY BENEFITS of MARKETING
RESEARCH

• Analyze customer needs and satisfaction.

• Analyze current markets and opportunities.
• Analyze the effectiveness of marketing
strategies.
• Analyze marketing process and tactics
currently used.
• Analyze the reasons for goal achievement
or failure.
 SCANNING the MARKETING
ENVIRONMENT

• Environmental Scanning -- The process of

identifying factors that affect marketing
success.
• Factors involved in the
environmental scan
include:
- Global factors
- Technological factors
- Sociocultural factors
- Competitive factors
- Economic factors
The MARKETING ENVIRONMENT
The CONSUMER
and
B2B MARKET
• Consumer Market -- All the individuals or
households that want goods and services for
personal use and have the resources to buy
them.
• Business-to-Business
(B2B) -- Individuals and
organizations that buy
goods and services to
use in production or to
sell, rent, or supply to
others.
 MARKETING
to
CONSUMER
•
S
The size and diversity of
the consumer market forces
marketers to decide which
groups they want to serve.

• Market Segmentation --
Divides the total market
into groups with similar
characteristics.

• Target Marketing --
Selecting which segments
an organization can serve
profitably.
 SEGMENTING the CONSUMER
MARKET
• Geographic Segmentation -- Dividing the
market by cities, countries, states, or regions.

• Demographic Segmentation -- Dividing

the market by age, income, education, and
other demographic variables.

• Psychographic Segmentation -- Dividing

the market by Personality, group values, and
Life style.
 SEGMENTING the CONSUMER MARKET
(continued)

• Benefit Segmentation -- Dividing the market

according to product benefits the customer prefers
(Comfort, Economy, luxury, durability) .

• Volume (Usage) Segmentation -- Dividing the

market by the volume of product use (usage, Loyalty
status).
 MARKETING to
SMALL SEGMENTS
• Niche Marketing --
Identifies small but
profitable market
segments and designs or
finds products for them.
• One-to-One
Marketing--
Developing a unique
mix of goods and
services for each
individual consumer.
https://www.rolls-roycemotorcars.com/en-
(Eg: Dell)
US/configure-your-rolls-royce.html
 MASS MARKETING vs.
RELATIONSHIP MARKETING
• Mass Marketing -- Developing products
and promotions to please large groups of
people.

• Relationship Marketing-- Rejects the idea

of mass production and focuses toward
custom-made goods and services for
customers.
 The CONSUMER DECISION MAKING
PROCESS AND OUTSIDE INFLUENCES
 BUSINESS-to-BUSINESS
MARKET (B2B)

• B2B marketers include:

- Manufacturers
- Wholesalers and retailers
- Hospitals, schools and charities
- Government

• Products are often sold and resold several

times before reaching final consumers.
 B2B MARKET DIFFERENCES

1) There are relatively few customers.

2) Customers tend to be large buyers.

3) Markets are geographically concentrated.

4) Buyers are more rational than emotional.

5) Sales are direct.

6) Promotions focus heavily on personal

selling.