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 Marketing
Fundamentals
Sandip Mitra
16.11.2010
What is Marketing?
Marketing is a societal
process by which
organizations, groups and
individuals obtain what they
need and want by
identifying value, providing
it, communicating it and
delivering it to others.
Core Concepts
• Needs, wants and demands
• Markets
• Products
• Exchange, transactions &
Relationships
• Value, satisfaction & quality
• Communications
Core concepts of
marketing
Core Concepts

Needs, wants Products &

& demands Services

Value,
markets Satisfaction
& Quality

Exchange,
Transactions
& relationships
Needs
Basic force that motivates a
person to do something – a state
of felt deprivation

THIRST
Wants
Needs that are
‘learned” or culturally
conditioned by society
in which the individual
lives – wants that are
directed to specific
objects
PEPSI
Demands
Wants for specific
products backed by an
ability and willingness to
pay
Other concepts
Drive Strong stimulus that
encourages action to reduce
a need
Value Customer perceived value =
Perceived benefits/
acquisition cost
Product Anything that can be offered
to satisfy a need or want
Customer Product’s perceived
Satisfacti performance in delivering
on value relative to customer’s
expectations
Other concepts

Market A set of actual and potential

buyers who might transact with
the seller
Exchang Process in which one party
e makes some sacrifice to another
party in return for receiving
something it values
Marketi Balanced integration of
ng Mix marketing techniques and
activties
What do marketers study in
consumers
What are the techniques used
in marketing of goods and
services
Research Study consumer needs &
satisfaction
Product Design suitable product with
development attributes and benefits desired by
consumers
Pricing Determine the appropriate price
considering perceived value,
competiton and company’s
objectives
Sales & Sales Activities that stimulate & lead to
Promotion effective exchange
Advertising, PR Communication of organisation’s
and product values & benefits
Distribution & Achieve efficiency in reaching
After-sales customers and ensuring their
 Working Toward Mastery

Integrated
Organisatio
Adoption of marketing

n Effort
concept

Profit
Orientation

Customer
Orientation

Evolution of the marketing organisation

Strategic View of Marketing
• Determines the direction and scope of
the long-term activities performed by
the organisation to obtain competitive
advantage
– Applying resources to changing environment
– Satisfy customer needs
– Meet stakeholders’ expectations
– Strategy to cope with competition
– Identify marketing opportunities
– Develop and commercialise new products/ services
– Allocate resources to marketing activities
– Develop orgn. structure to ensure desired
performance is achieved
Marketing Systems
Marketing Management
Philosophies
• Consumers favour products that are available
and highly affordable
• Consumers favour products that offer the best
quality, performance and innovative features
• Consumers will buy products only if the
company promotes/ sells these products
• Focuses on needs/ wants of target markets &
delivering satisfaction better than competitors
• Focuses on needs/ wants of target markets &
delivering superior value
QUIZ
Marketing Mix
In marketing what
does the term STP
refer to?
Are all the elements in
a company’s
marketing mix
controllable?
For what element of the
marketing mix is
“perceptual mapping”
technique used?
 Simple Preparation
Hot Dogs
Tuna
Bacon
Chicken

Healthy Unhealthy

Turkey
Beef
Fresh Fish
Pork

Involved
Preparation
HLL soaps - Dove and
Hamam are positioned
differently based on which
segmentation variable?
“Hamara …..” is the jingle for
which brand?

Why did Bajaj stop scooter

production?
 Stages in the Product Life Cycle

Introduction Growth Maturity Decline

Digital
cameras

Mini-disc
Electric cars

Monopoly Monopolistic Oligopoly Pure Competition

*= virtual reality The time at each stage varies

greatly
How many “Product
Lines” does KFC
have?
 How many businesses does ITC
have?
• FMCG
• Hotels
• Paperboards & Packaging
• Agri-business
• Information Technology
What is the name of the
business portfolio
planning tool that ITC
could use to decide on
the growth & market
share of its businesses
Can you relate the different
stages of the PLC to the
BCG Matrix?
 ITC FMCG Brands (Product Mix)
Width of Assortment

Cigarette Foods Personal Lifestyle

s Care Retailing

Insignia Ready to eat Essenza Wills

Sunfeast Di Wills Lifestyle
India Kings Staples Fiama Di John
Ashirvaad Wills Players
Classic Confectionery Vivel
(Mint-O,
Candyman)

Gold Flake Snack Foods Superia

 Product Mix (Portfolio)
Dimensions
• Width: number of product lines
• Length: total number of items in mix
• Depth: number of product variants
• Consistency: degree to which product
lines are related
Electric cars are in which
stage of new Product
development process?
Stages of the New-Product Development Process

Business
Strategy

Develop Generate Conduct business

new-product ideas/ Screen analysis
strategy concepts and evaluate

Develop Test Commercialise

Commercialized
Product
Can you give an example of:
– Co-Branding

– Brand extension
 Product / Brand
strategies at the
maturity/ decline stage?
• Brand extension
• Augmenting product
• Brand repositioning
• New product development