Needs Wants Demands What Deprivation of basic, satisfaction Existing, few Specific satisfiers of deeper needs Wants are many Specific Wants for products Wants + purchasing power Ability & willingness Influencers Natural, not created Shaped by Social-family, friends, Peers or Institutional-Promotion Shaped by status, Aspirations Instances Food, clothing, belonging Needs food-Wants Mcdonalds Needs clothes-Wants Allen Solly Needs Car/TV, Wants Luxury Sedan/flat, As willing + able, Demand Benz/Plasma TV Marketers Existing, minimum influence, House Influence wants, Affordable&available Bank loan, EMls 3 Bed Room Influence demand by making product attractive/aspirational, Status Duplex / Bungalow
Product-Offered to satisfy needs / wants Product-tangible eg Books ; Service-Intangible eg Banking, Finance, Hospitality Products also deliver services eg car-product & transportation-service, Mobile Focus on products sans service risky eg TV, Fridge, AC without back-up Service Team- Risky
Brand-An identifying symbol/words/mark distinguishing a product/company from its competitors. Branding is an essential part marketing. Brand = (Functional + Economic + Emotonal) Value Propositions. Nokia-Functional, Amul- Economic, Saffola- Emotional
Value Proposition- Bundle of benefits the product provides to fulfill customer needs and wants Market (mercor-to buy Latin) Potential + Existing customers sharing a common need/want, able & willing to engange/enter in exchange to satisfy their needs/wants Eg Pharma Market=Doctors + Hospital + Trade Economics-Buyers+ Sellers= Market, Marketers Sellers is industry, Buyers is Market
Value (valere latin worth)- Consumers estimate of the utility/capacity of a product/brand to satisfy their needs. Fair return. Price is what you pay, value is what you get- Warren Buffet Mobiles- convergence
Planning Process of anticipating future events & conditions to determine the best way to achieve organizational objectives Marketing planning- Implementing planning activities to achieve marketing objectives Strategic planning- Adopting courses of action to achieve organizational objectives Tactical planning- Planning that guides the implementation of activities in the strategic plan
Marketing Environment M8 +C5 + PESTND (Case Mobile Industry) Surrounds & impacts the organization, 3 key perspectives- Macro, Micro and Internal environments. Environment
Internal Micro Macro Internal Envt-M8- 8 Ms 6Cs PESTND Important for Men Components Political managing change Material Corporate Economic Internal Envt-C5- Money Channel Socio-cultural Influences organization Minutes Communication Technological directly, Relationship Markets Customer Natural between firms & driving Machines Competition Demographic forces Methods Direct impact Out of direct control Macro Envt-PESTND Mind Influencing factors, but Change management out of direct control, environmental change
PEST ND Political Factors Huge, influence policy & regulations and spending power of customers Government- VAT, WTO-GATT, Taxation, Reservations Economic Factors Economy Sensex, Forex, Interest rates, Inflation, Employment level, Per Capita, GDP, Sociocultural Factors Ethnicity, local factors and issues, environmental issues- Bandra- Worli Sealink Attitudes to foreign products and services- KFC Bangalore, Language impact Cultural and religious factors- Mcdonalds French fries controversy, Nivea in Latin America Technological Factors Technology- New, accessible, better, cheaper, innovation, investment intensive- ATM, Net Natural Factors Raw material availability, Pollution, Environment, Monsoon - Pharmaceuticals Demographics Age profile, Geriatrics, Life expectancy, Mortality, Geography, Consumption, Psychographics
SWOT Analysis (Case) Tool for auditing organization and environment 1 st Stage of planning, helps marketers focus on key issues Identify key issues & objectives, use with other audit & analysis tools, like PEST / 5-Forces Strength & weaknesses- internal factors, Opportunities & threats-external Strengths- Specialty, economies, reputation, innovation, service, tech, location, quality Weaknesses- lack of strengths Opportunities- Competition, innovation, technology, regulatory
Successful SWOT analysis guidelines Short, simple and fair analyses especially about strengths & weaknesses of your organization Anticipation of PEST factors in the industry, Avoid grey areas Competitive analysis through benchmarking, popular tool, quick & easy to learn
Disadvantages Can be very subjective, Not very reliable, Bias steps in Two people rarely come-up with the same final version of SWOT Use only as a guide
Marketing Mix (Neil H. Borden) Marketing tactics or tools or 4Ps (McCarthy) Other Ps- Pace, People, Policy, Process, Packaging, etc Car-Mix of Engine, Mileage, Looks, Price, Features, Quality, EMI options Mix element vary leading to different strategies, perception & value proporsitions Product Brand, features, design, quality, range Warranty, AMC, service, size, packing, performance Price Strategies, Credit, Costs Promotion Sales promotion, Personal Selling, Advertising, Sponsorship, Multi-level Marketing, Direct Marketing, Trade fair & Expositions Place Channels, location, coverage, Transportation, inventory, width, Spread, reach, shippers
Promotion Marketing communication Objectives- Sales, attract/retain/covert, trial, awareness, remind, reassure Retention Levels- reading 10%, listening 20%, Audio-visual 70%; Sight, Sound, Motion effective. Integrate individuals promotion mix components for effective communication
Full VS Push: Push Sales Force + Trade Promotion, Pull Advertising + Customer Promotion Strategies differ across industry players, traditionally HLL Push and P&G Pull strategy worldwide Promotion Mix Strategy ICICI
Channel Intermediaries Distributor (C&F)- Bulk to smaller packs, handle major area, supply to stockists Wholesalers (Stockists)- Resell to retailers, storage, coverage essential Others- Commission agents, co-operative (farmers), Indentors (Imports), agents (magazine) Retailers- Strong customer influence, consumption/purchase pattern insight, service Specialty (Sport), Supermarket (Big Bazar) Convenience (Kirana), Factory Outlets, Warehouse, Direct sellers (Encyclopedia)- D2D, Vending Machine (Tea, Coffee), co-operative (Apna Bazar, Grahak Peths, Societies), Chain stores (Monginis) Internet (Service)- Channel margins and inventory costs major saving- can be passed, hence economical, death of distance, geographically disperse market, niche products reach wider audience, low entry barriers, display variety & functionality, interactive, Payment Risky, gaining popularity, delivery costly- Books, CDs, medicine, travel, tourism 3 rd Party Logistic (AirFreight, GATI)- tremendous scope Channel Decisions Direct or indirect channels/single or multiple channels Length of channel Types of intermediaries/Number of intermediaries at each level Which intermediaries? Avoid intrachannel conflict- Nike
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