Introduction to Marketing.
“The purpose of business is to create customer. Customer satisfaction is profit. Profit is investment to future”. – Peter.F.Drucker.
v What is Market?
Market is an arena for potential exchanges.
v What is Marketing?
“Have it your way”
“To sell more, shift to more people more often for more money in order to make profit” - Sergio Zyman, Ex. V.P, Coke
Needs : -Human needs are the basic requirements and include food clothing and shelter. Without these humans cannot survive.
Eg: Customers need to eat when hungry eating at Mc Donald’s satisfies the need to meet the hunger.
Wants: – Wants are a step ahead of needs and are largely dependent on the needs of humans themselves.Needs diverted to specific objects. Forms of needs shaped by culture, personality.
Eg: Customers want to buy Mercedes.
Demand:- Wants for specific products backed by an ability to pay.
Eg: you might want a BMW or a Mercedes for a car. . But can you actually buy a BMW or a Mercedes? You can provided you have the ability to buy a BMW or Mercedes
v Needs REAPS
R . . . Rational
E . . . Emotional
A . . . Aspirational
P . . . Physical
S . . . Spiritual
What REAPS Model does is that it helps you to understand the various needs of a consumer and then the marketer will be able to rate the brand on these needs. For example a brand like Apple, appeals to the rational needs through its product features, appeals to the emotional need of the consumers through its positioning, is aspirational because of the brand , appeals to the physical needs through design and connects to the consumer at a higher level of bonding with the consumer.
v Four Ways of Satisfaction
1. Self Production:- Self generation. Example, Self Education (Eklavya). In Mahabharat, Ekalavya aspired to study archery in the gurukul of Guru Dronacharya but he was rejected so Eklavya began a disciplined program of self-study over many years.
2. Co-ercion:- The action of persuading someone to do something by using force or threats. Example, Stealing for personal needs.
3. Supplication:- giving something because of goodness or kindness. Example, government providing subsidy on gas cylinders.
4. Exchange:- The art of giving one thing and receving another. Example, Credit Card, ATM Card.
v Types of Demand
Negative Demand:- consumer dislike the product or may even pay price for it. Example: Some people have negative demand for vaccination
No Demand:- here the customers are uninterested or not aware about the product. Example: No Demand:- here the customers are uninterested or not aware about the product.
Latent Demand:- Many consumers may share a strong need that cannot be satisfied by any existing products. Example: Latent demand for harmless cigarettes.
Faltering demand:- A substantial drop in the demand for products. Example: Demand for umbrella
Irregular demand:- Organizations face demand that varies on a seasonal, daily or even hourly basis. Example: Some markets are being on weekends and not on weekdays
Full demand:- Organizations face full demand when they are pleased with their volume of business. Example: Demand for Maruti Swift at the time of booking are made open
Overfull Demand:- Some organizations face a demand level that is higher than they can or want to handle. Example: Quota System for new car registration by a fix percentage annually
Unwholesome Demand:- consumer may be attracted towards the product that have undesirable social consequences. Example: Demand for drugs for the druggist
v Marketing Orientations (Stances)
1. Product Concept
Customers will favour those products that offer the most quality, performance, innovative features. Eg: Mc Donald’s
2. Selling Concept
Consumers & Businesses if left alone will ordinarily not buy enough UNLESS supported by an aggregate selling & promotion efforts e.g.: Insurance Policy
3. Marketing Concept
Key to achieving its organizational goals consists of the company being more effective and efficient than competitors in creating, delivering and communicating superior customer value to its chosen target markets. Eg: Head & Shoulder Shampoo
4. Social Marketing Concept
Environmental deterioration, Resource shortages, Explosive Population Growth, World Hunger and Poverty, neglected social sections. Act in best long run interest of the consumers and society.
Organizations task is to determine needs, wants and interests of target market & to deliver the desired satisfactions more efficiently than competitors in a way that preserves or enhances the consumers & society’s well – being. Eg: National high Blood Pressure Education Programme & Community Heart Prevention Studies in Pawtucket & Stanford University
5. Production Concept
Consumers will prefer products that are widely available and inexpensive. High production efficiency, low-cost, mass distribution. Eg: Ford- Americans can take any car if its black
6. Customer Concept
§ Level is customer.
§ Separate offers, services & messages to individual customers
Eg: Apple Company
v Segmentation, Target & Positioning.
1. Segmentation: “ Never follow the crowd ” - Philip Kotler
Basic ideas-Selection Of Target Market and Effective Marketing Programs. The basis of segmentation is:
a.) Geographic : geographic segmentation calls for dividing the market into different geographic unit such as
b.) World Region
d.) Metro (city)
g.) Population density
For eg: Mc Donald’s offers sea food meals including lobsters and crab in market like New England
3. Gender: Drivers are generally preferred to b male
4. Income : Lexus for high end customers
5. Occupation : Office goers would have different needs then that of a person going to school
6. Education : Readers digest
7. Family Size : Size of the car depends on the people in the family
8. Family Life Cycle
Jain community purchases sandalwood as their sacred offering to God
12. Special Community
13. Nationality: Belgium Chocolate
Social class: People prefer cars according to their social class
Life style: Starbucks aims to make coffee an experience
Personality: Cosmetics marketers target aggressive ladies who are very conscious about their skin
Occasion: Archie’s-Valentine day cards
Benefits: Orbit provides fresh breath
User status: Smokers prefer particular brand of cigarettes
Usage rate: Beauty Parlours
Loyalty status: Razor of a particular brand
Readiness stage: Gits Ready to make gulab jamun
Marketing Factors: Big bazaar 4days super sale
Attitudes towards Product: Vegetarians avoid using cosmetics that have animal fat
2. Targeting- after segmentation the marketer then decided which segment present the great opportunity, which are target market. targeting can be defined as to which market place to serve .
Targeting options are
1. Undifferentiated à one product. Undifferentiated targeting focuses on what is common Appeal- broadest number of buyers .
Rely on- mass channels/advt/universal themes ( parle frooti )
2. Concentrated à particular market segment. Concentrated targeting focuses on large share in one or a few submarket
Appeals - customers delight (good market position)
Rely on- greater knowledge, special reputation, enjoy operating economic (due) specialization
3. Differentiated à different product for different market segment. Differentiated targeting focuses on two or more market & separate products.
Appeals– customers delight
Rely on – creating more total sales, concerned about increasing cost,optimal use of strategy
v Consumer Behaviour
Consumers mind is just like this iceberg where a seller know only 1/4th of the consumer thinking while rest 3/4th he don’t know. So the seller main target is to know 3/4th thinking of consumer.
v 6 O’S
1. What ?? Object of purchase
2. Why ?? Objective of purchase
3. Who ?? Organization of purchase
4. How ?? Operation of purchase
5. When ?? Occasion of purchase
6. Where ?? Outlet of puchase
1. Object of purchase : any obect object that i buy for my self use can be termed as object i.e what ( purchase of bread when needed is a object of purchase )
2. Objective of purchase : any object or item which you need i.e ( purchasing of a new laptop for better gameplay)
3. Organization to purchase : any product which is sold out in the market belongs to some organization i.e(when we go to buy a car we have option from many organizations maruti, toyota, volks wogen , ford, mahindra etc )
4. Operation of purchase : refers to low cost frequently purchased brands in daily use (for ex: parle-g )
5. Occasion of purchase : refers to a special time or season in a year when someone buys certain product/ items
For ex ( purchase of car on dusshera/ purchase of sweets during diwali )
6. Outlet of purchase : refers to a place or outlet from where you buy a certain product/item (for eg :hallmark and archies
• Salaried Professional
• Govt. Professional
• Self Employed
WHY DID YOU BUY A BULET?
• Thumping Sound
• Everyone Stares At You
• To Prove That You Are A Man
• It Suits You
• Girls Like It
• Others -
HOW LONG HAVE YOU OWNED A BULLET?
• 1 Year Or Less
• 2 Years
• 3 Years
• 4 Years Or Above
DOES RIDING A BULLET MAKES YOU FEEL DIFFERENT FROM OTHERS?
WHERE DO YOU GET YOUR BULLET SERVICED ?
• Service Center
• Private Mechanic
DOES YOUR BULLET HAS ANY GOOD EFFECTS?
• Got Me A New Girlfriend
• It Got Me Respect From My Fellow Riders
• Others –
ARE YOU SATISFIED WITH THE PERFORMANCE?
WOULD YOU SUGGEST ANY MODIFICATIONS?
• Engine Performance & Durability
• Fuel Efficiency
• Paint Quantity
• Others –
DO U THINK IT’S OVER PRICED?
BULLET OR GIRLFRIEND?
Once you ride a bullet,You don’t ride any other bike
boys ride bikes
men ride bullet
In the case of RANG DE COLORS, it is located in Lonavala so I have selected both traditional and digital media.
è Traditional Media :-
• Leaflets and posters
• Street level promotion
è Digital Media
• Banners and pop-ups
• Mobile marketing
• Social network sites
Idea Generation Device
Attribute Listing : a flashlight may be described as a long, round tube made of plastic using batteries to light a bulb which shines through a clear plastic shield when the user pushes a switch. Examining each of the attributes could lead to new ideas. Why is it round? Why plastic? Could it be turned on in a different way, or be powered by a different source? This kind of questioning could lead to new products which would address entirely new markets.
A professional business woman in her 30’s wants to change her career she doesn’t know what she exactly wants to do but she knows that she is not happy in her current line of work she conducts an intense brainstorming session to determine which field she should persue
Reverse Assumption analysis:
When you cross the street you assume that the cross traffic will stop at red light if those assumptions are broken the result will be devastating.
PRODUCT LIFE CYCLE:
1. Inform potential consumer.
2. Induce product trial.
Secure distribution in retail