application of marketing

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

c.)   Country

d.)  Metro (city)

e.)  Town

f.)    Village

g.)  Population density

h.)  Climate

i.)     Others

For eg: Mc Donald’s offers sea food meals including lobsters and crab in market like New England

B .Demographic:

1.     Age

2.     Sex

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

9.     Religion:

Jain community purchases sandalwood as their sacred offering to God

10.                        Race

11.                        Caste

12.                        Special Community

13.                        Nationality: Belgium Chocolate

c. PSYCHOGRAPHIC

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

d. BEHAVIORAL

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 1/4^th of the consumer thinking while rest 3/4^th he don’t know. So the seller main target is to know 3/4^th 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

Examples

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

Marketing research:

Questionnaire:

NAME:-

AGE:-

SEX:-

PROFESSION:-

•         Student

•         Businessman

•         Salaried Professional

•         Govt. Professional

•         Self Employed

WHY DID YOU BUY A BULET?

•         Thumping Sound

•         Respect

•         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?

•         Yes

•         No

 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?

•         Yes

•         No

WOULD YOU SUGGEST ANY MODIFICATIONS?

•         Engine Performance & Durability

•         Fuel Efficiency

•         Design

•         Paint Quantity

•         Others –

 DO U THINK IT’S OVER PRICED?

•         Yes

•         No

 BULLET OR GIRLFRIEND?

POSITIONING:

Once you ride a bullet,You don’t ride any other bike

   boys ride bikes 

    men ride bullet

v ADVERTISING

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

• Billboards

• Newspapers

• Radio

• TV

• Film

• Sponsorships

• Street level promotion

• Festivals

è Digital Media

• Websites

• Email

• Banners and pop-ups

• Webcasts

• Blogs

• Videocasts

• 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.

Morphological Analysis:

Aerospace industry

Brainstorming:

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:

Introduction Stage

1.     Inform potential consumer.

2.     Induce product trial.

Secure distribution in retail