3. About Marketing….
• A Professor at one of the IIM's (INDIA) was explaining
marketing concepts to the Students:-
– 1. You see a gorgeous girl at a party. You go up to
her and say: "I am very rich. Marry me!" - That's
Direct Marketing
– 2. You're at a party with a bunch of friends and see
a gorgeous girl. One of your friends goes up to her
and pointing at you says: "He's very rich. Marry
him." - That's Advertising
– 3. You see a gorgeous girl at a party. You go up to
her and get her telephone number. The next day,
you call and say: "Hi, I'm very rich. Marry me." -
That's Telemarketing

4. – 4. You're at a party and see gorgeous girl. You get
up and straighten your tie, you walk up to her and
pour her a drink, you open the door (of the car) for
her, pick up her bag after she drops it, offer her ride
and then say: "By the way, I'm rich. Will you marry
me?" - That's Public Relations
– 5. You're at a party and see a gorgeous girl. She
walks up to you and says: "You are very rich! Can
you marry me?" - That's Brand Recognition
– 6. You see a gorgeous girl at a party. You go up to
her and say: "I am very rich. Marry me!" She gives
you a nice hard slap on your face. - That's Customer
Feedback
– 7. You see a gorgeous girl at a party. You go up to
her and say: "I am very rich. Marry me!" And she
introduces you to her husband. - That's demand and
supply gap

5. – 8. You see a gorgeous girl at a party. You go up to
her and before you say anything, another person
comes and tells her: "I'm rich. Will you marry me?"
and she goes with him - That's competition eating
into your market share
– 9. You see a gorgeous girl at a party. You go up to
her and before you say: "I'm rich, Marry me!" your
wife arrives. - That's restriction for entering new
markets

6. Marketing is for Everybody
• TO SHOW THAT MARKETING IS ESSENTIAL
• PROVIDE AN UNDERSTANDING OF THE BASIC
MARKETING CONCEPTS

7. The Nature of Marketing
• What is the Purpose of Marketing?
1.Satisfaction:
• Functional Satisfaction
• Psychological Satisfaction
• The Utility concept
2. Consumer Problems
3.Providing Benefit Bundles
4..Offering a Total Consumption System

8. Simple Marketing System
Communication
Goods/services
Industry Market
(a collection (a collection
of sellers) Money of Buyers)
Information

9. The Nature of Marketing
• What is the Purpose of Marketing?
Satisfaction
• Increments of Satisfaction
• Facilitating Exchanges
–Conditions for Exchange
•Systems of Exchanges

10. Evolving Views of Marketing’s Role
Production
Marketing
Customer
The customer as the controlling
function and marketing as the
integrative function

11. Traditional Organization Chart
Top
Management
Middle Management
Front-line people
Customers

12. Customer-Oriented Organization Chart
Customers
Front-line people
Middle management
Top
manage-
ment

13. Core Concepts of Marketing
Target Markets & Segmentation
Needs, Wants, and Demands
Product or Offering
Value and Satisfaction
Exchange and Transactions
Relationships and Networks
Marketing Channels
Supply Chain
Competition
Marketing Environment

14. Nike Town

15. Experiential marketing!?

17. Disney Experience!

18. Apple Store

19. Implications of marketing
• Who are our existing / potential customers?
• What are their current / future needs?
• How can we satisfy these needs?
• Can we offer a product/ service that the customer
would value?
• Can we communicate with our customers?
• Can we deliver a competitive product of service?
• Why should customers buy from us?

20. The marketing concept
• choosing and targeting appropriate
customers
• positioning your offering
• interacting with those customers
• controlling the marketing effort
• continuity of performance

21. Evolving Indian Consumer

22. The Indian Consumer’s
Changing Spending Patterns
Changing consumer behavior is catalyzing change in
spending patterns, freeing up income for discretionary
expenditure
27% 30% 32% 32%
36%
40%
2003 2008 2013
4%
4%
9% 5%
10% 20%
20% 20% 11%
Food & Grocery Fuel, Transport & Communication Discretionary Expenditure
Rent, Utilities & Education Savings & Investment

23. Emerging Trends

24. Shift to Thrift
Redefining Value

25. Small Wonders
Small Perk Me Up
Products

26. ‘Mummy ka Magic’
Stays Intact

27. Eating ‘Out’ at Home
Evolving Home Delivery Model

28. Taste Bhi, Health Bhi
A very strong co-relation

29. Sattva Foods……..

30. Quality Walls’s “MOO” – Calcium Enriched !

32. Food On The Go
Instant Pick Me Up

33. Eco Conscious
A light shade of green
Eco Conscious

35. Food As Discovery
More Experimenting

36. The Food ‘Connect’
Use of Social Media

37. POP will remain
Supreme
The final test

38. The changing Indian consumer
 The media explosion.
 Increase in disposable income.
 The rise of the great Indian middle class
 Increase in the number of earning young people
 Change in expenditure patterns
 Increase in the number of working women 38

39. Successful marketing requires:
• Profitable
• Offensive (rather than defensive)
• Integrated
• Strategic (is future orientated)
• Effective (gets results)

40. Nirma Little Girl!

41. “Surf” ad with Lalitaji!

42. Lux ad in 1950s!

43. Lux Beauty soap with Katrina!

44. Mantri Square, B’lore!

45. What is Marketing ?
Selling ?
Advertising ?
Any thing more?

46. • SOME ISSUES ON MARKETING

47. Model of Consumer Behavior
Marketing Buyer’s Black Box Buyer’s Responses
Mix
Stimuli
? ?
Psychological
•Memory
•Perception
• Motivation
• Product • Personality
• Price Demographics
• What is purchased?
• Promotions • When, Timing?
• Advertising • How much?
Environmental
•Place • Family • For what use?
•Culture

48. Examples of Buying Motives:
Psychological or Functional?
• A senior wants to impress his date at
the prom .
His primary motive is …?
Psychological

49. Examples of Buying Motives:
Psychological or Functional?
• A girl wants to remember her grandmother on her birthday.
Her primary motive is…?
Psychological

50. Examples of Buying Motives:
Psychological or Functional?
• A homemaker needs a new washing machine and has had
good experiences with Sears.
Her primary motive is …?
Functional

51. Examples of Buying Motives:
Psychological or Functional?
• A teacher wants to buy a practical car to be used for family
transportation.
Her/His primary motive is …?
Functional

52. Examples of Buying Motives:
Psychological or Functional?
• A career woman always buys Liz Claiborne clothes.
Her primary motive is…?
Psychological

53. Examples of Buying Motives:
Psychological or Functional?
• An overweight 40 year old man wants to loose weight so
that he can reduce his blood pressure.
His primary motive is…?
Functional

54. Examples of Buying Motives:
Psychological or Functional?
• A homeowner needs to mow their lawn.
Their primary motive is…?
Functional

55. Consumer Buying Behavior Competency
Functional Psychological
Motive Motive
The price is 40
cents off the
regular price.
It never needs
ironing.
Diamonds are
forever.
Serving you since
1971.
Ninety-day
warranty.

56. Consumer Buying Behavior Competency
Functional Psychological
Motive Motive
Running shoe with
built-in arch.
It’s all the rage—
colored action wear
and style.
Wheaties—the
breakfast of
champions!
Steel-belted radial
tires warranted for
40,000 miles
A watch—a gift she
will treasure
always.

57. What is Marketing ?
We use the word Marketing to describe such things as
• analyzing the needs of the people
• trying to guess what types of products they want
• estimate how much they will buy
• predict when they want to buy
• determine where they go to buy the stuff

58. What is Marketing ?
…. And,
• figure out the best price to sell it at - and can you still
make a profit selling it at that price
• decide on promotional things to create awareness
about the product
• look at the competition to see what they are doing
with pricing, features etc.

59. Marketing is concerned with anticipating consumer
demand and directing flow of goods from producers to
consumers.
Marketing has to do with matching producers‟ outputs to
consumers‟ inputs [ needs & wants ].
Serving the needs of customers is what business should
be all about …
Marketing is the business function that interprets
customer needs to the rest of the organization.
Marketing should begin with the customer needs - NOT
with the production process. Mkt. should anticipate
needs.

60. Marketing - the formal definition
Process of planning and executing the
conception, pricing, promotion, and
distribution of ideas, goods, and services to
create exchanges that satisfy individuals and
organizational objectives.

61. Why should we know about Mkt.?
• Also, Cause,,,,,,,,,,,,,,,,,, marketing people in a
company bring in the money - so their jobs
are important, so they get paid a lot.
• If you get involved in the marketing side, you
are being involved in the INCOME side of the
company and your job is very critical (ie. -
hard to ever fire you or lay you off)

62. The Importance of Marketing
• Why study Marketing - „cause you can get a
JOB in Marketing !!
• Canada is a very multi-cultural country
• We can buy products from all over the world
• Selling new products to Canadians requires
new marketing approaches - THEREFORE
there will be many new job opportunities

63. The Importance of Marketing
• Marketing is a core business discipline
• The study of marketing is important to the basics of
running a business, big or small
• When you buy a product - the cost of marketing amounts to
40 ~ 60% of the total
eg. If we buy shoes for Rs.800,
Rs.400 of that 800 has been spent on marketing (including
advertising, market research, development etc.)

64. The Importance of Marketing
Getting a JOB in Marketing !!
• Personal selling
• Advertising
• Package Design
• Transportation
• Storage
• Marketing Research
• Product Development
• Wholesaling
• Retailing

65. The Importance of Marketing
Importance to Companies
• When you work in the marketing department of a
company you are part of LINE personnel
• LINE personnel are always more critical than STAFF
personnel because LINE personnel “bring in the
money” - therefore your job is revenue earning, not
revenue spending

66. Why should we know about Mkt.?
• You can get to be C.E.O. and Chairman of
the Board
• “Marketing is often the route to the top”
• Almost always the C.E.O. comes from the
V.P. Marketing, not V.P. Human Resources
or V.P. Government Relations

67. The Importance of Marketing
Getting a JOB in Marketing !!
In addition, many people working with NPO‟s also
do marketing
• Promoting political parties
• Cultural groups
• Religious organizations
• Civic organizations eg. Kiwanas, Shriners
• Charitable organizations eg. Red Cross, Salvation
Army

68. Marketing
• Marketing is something companies do, and it is also a
characteristic of our society
• “It is both a set of activities performed by
organizations, and a social process”

70. Micro - marketing for a company
Macro - the whole economy

71. Micro - marketing for a company, things
you do to accomplish the organizations
objectives (companies and NPO’s)
Macro - the whole economy and its flow of
goods and services from producers to
consumers

72. Micro - Its not just selling stuff, but also
looking at what the customers want
Macro - Looking at how everybody in the
country can have access to things they need.
Government has to make sure everybody
has fair access.

73. Micro-Macro Dilemma
• Government has to step in cause not everything
would be produced fairly by companies - so
regulation needed
• Ex .1: It would be cheaper to make cars without
airbags and seatbelts - but Govt. insists they must –
so, it has to be done.

74. Micro-Macro Dilemma
• Government has to step in cause not everything
would be produced fairly by companies - so
regulation needed
• Ex. 2: It would be cheaper to make beer cans from
raw material cause the price of mineral ore is low -
but the Govt. insists a certain % must be recycled to
reduce waste and pollution

75. The Marketing Functions
Buying
Transporting
Storing
Grading
Financing
Risk Taking
Information Collection
Research….

76. WHO does the marketing functions ?
From a Macro-point of view
• Centrally planned economy (communism)
- its done mostly by the government
• Market-direct economy (capitalism)
- its done by various companies, middlemen, brokers
etc.

77. Innovation is encouraged by a market-directed economy
(capitalism) because people who come up with new ideas are free to
try and market them and make a fortune. In a communist country,
government has strict controls on the “means of production” so
there is a limit to what people can manufacture.
In a capitalist economy, people are always trying think of new ways
to satisfy un-met needs, and, this encourage new thinking

79. A380 - Interior

80. Reliance i Pad ( In association with
Notion Ink, HYD. )

81. Rolls Royce Ghost!

82. Advocacy Advertising
• You are not trying to sell a product, you are trying to
get people to believe in something, or behave in a
certain way
eg.
- Don’t drink and drive
- Canadian Cancer Society
- recycle
- use the TTC, save gas

83. One of the big complaints about marketing is that ppl act
unethical in order to make a sale.
Sometimes it is easy to forget that morals are based on your
own cultural standards and in different cultures, people have
different opinions about what is ethical.
Eg. Bribery is perfectly acceptable in some parts of Asia
and Latin America, but unacceptable in USA and Canada

84. Marketing Concept
- Social Responsibility
- “improve positive effects on Society and
reduce negative effects…”
- environmental problems
- social responsibility conflicts with profit
objective
(raises ?, is mktg concept desirable)

85. Marketing Concept
- Social Responsibility
-? Of social responsibility cutting into
profits
- some companies have been very
successful at dealing with this eg. BODY
SHOP
- they realize it is a way to endear
themselves to trendy customers

86. Marketing Concept
- Social Responsibility
-? What if it cuts into profits
Answer - increasing quality may cost more in
production, but you may make this money back
in increased sales which come about as the
customers realize you have a very good quality
product - this will reduce the advertising costs
and customer service/warranty costs and
ensure customer satisfaction re: brand loyalty

89. Company Orientations Towards the Marketplace
Orientation Description Relative Time Basic Managerial
Span Objective
Production Transition from Home Industrial Profit Maximization via
Manufacturing to Factories Revolution Economies of Scale
Product & Focus on Product Development, Profit Maximization
Financial Performance and Features and Through Superior
the Growth of Large Scale Product Performance
Industrial Empires
Sales Transition from Scarcity of Profit Maximization via
Goods to Scarcity of Markets; Demand Generation
Market Saturation with Basics
Marketing Transition from Internal 1990s Profit Maximization via
(Organization) to External Matching of Products to
(Customer) Basis for Guiding Customer Wants
Marketing Decisions

90. The Marketing Concept
A Customer Orientation
Backed By Integrated Marketing
Aimed at Generating Customer
Satisfaction and Repurchase As The Key To
Satisfying the Organizations Goals

91. The Marketing Concept (Contd..)
Focus Means End
Sales Concept Products Selling & Profits Through
Promotion Sales Volume
Marketing Customer Needs Integrated Profits Through
Concept Marketing Customer
Satisfaction

93. Stages in Consumer Decision Process
Word-
of- Mouth
Awareness
Advertising
Interest
Channel
Decision
Product /
Service
Action
Price
Satisfaction

94. Cost of Losing and Attracting Customers
• Cost of attracting a new customer can be upto 5 times the cost
of keeping a current one happy
• Cost of Offensive Marketing > Cost of Defensive Marketing
• Some companies have increased profits from 25% to 85% by
reducing defections by 5%

95. Developing An Effective Marketing Plan
• Conduct A Marketing Review
• Build A Marketing Strategy
• Implement Strategy Via Marketing Mix
• Evaluate The Success Of The Marketing Plan

96. Conduct A Marketing Review (3-C Analysis)
A. Analysis of B. Assessment of C. Analysis of
CUSTOMER COMPANY COMPETITORS
Trends, Needs, Capabilities and Current Position,
Perceptions, Current Marketing Capabilities,
Behavior Position Actions
Opportunity Identification

97. Build A Marketing Strategy
Generic Strategies For
DIFFERENTIAL Selection of
ADVANTAGE TARGET MARKET
* Product Differentiation and Development of a
* Cost Leadership POSITIONING
* Special Market Focus STATEMENT

98. Implementation: The Marketing Mix (Four P’s)
• Product
• Price
• Place
• Promotion

99. 3C - 4P Framework
BMW
Colgate
IDS • Product Nestle
PDA / • Customer
Infiniti • Price Rohm&Haas
• Company
Sealed-Air • Promotion Intel
Barco • Competitor
• Place Dell

100. Marketing System
Long Term Factors
Technological
Short Term Controllable Factors
Economic Product Legal
Place
Price
Promotion
Socio / Cultural

101. Recasting the 3C - 4P Framework in Value Terms
Creating
Value
• Product
• Customer
Capturing
• Price
• Company Value
• Place
• Competitor Communicating
• Promotion Value

102. • The most important aspect of any company’s Marketing
concept is identifying its SWOT Analysis.
• What is SWOT analysis?

103. SWOT Analysis - Examples
• Example 1 - Wal-Mart SWOT Analysis. Strengths - Wal-
Mart is a powerful retail brand. It has a reputation for value
for money, convenience and a wide range of products all in
one store. Weaknesses - Wal-Mart is the World's largest
grocery retailer and control of its empire, despite its IT
advantages, could leave it weak in some areas due to the
huge span of control. Opportunities - To take over, merge
with, or form strategic alliances with other global retailers,
focusing on specific markets such as Europe or the Greater
China Region. Threats - Being number one means that you
are the target of competition, locally and globally.

104. • Example 2 - Starbucks SWOT Analysis. Strengths -
Starbucks Corporation is a very profitable organization,
earning in excess of $600 million in 2004.Weaknesses -
Starbucks has a reputation for new product development
and creativity. Opportunities - New products and services
that can be retailed in their cafes, such as Fair Trade
products. Threats - Starbucks is exposed to rises in the cost
of coffee and dairy products.

105. • Example 3 - Nike SWOT Analysis. Strengths - Nike is a
very competitive organization. Phil Knight (Founder and
CEO) is often quoted as saying that 'Business is war
without bullets. 'Weaknesses - The organization does have
a diversified range of sports products. Opportunities -
Product development offers Nike many opportunities.
Threats - Nike is exposed to the international nature of
trade.

106. • Example 4 - Indian Premier League (IPL) SWOT
Analysis. Where will you find the Mumbai Indians, the
Royal Challengers, the Deccan Chargers, the Channai
Super Kings, the Delhi Daredevils, the Kings XI Punjab,
the Kolkata Knight Riders and the Rajesthan Royals? In
the Indian Premier League (IPL) - the most exciting
sports franchise that the World has seen in recent
years, with seemingly endless marketing opportunities
(and strengths, weaknesses and threats of course!).

107. • Example 5 - Bharti Airtel SWOT Analysis. Weaknesses -
An often cited original weakness is that when the business
was started by Sunil Bharti Mittal over 15 years ago, the
business has little knowledge and experience of how a
cellular telephone system actually worked. So the start-up
business had to outsource to industry experts in the field.

108. Replaying the Game
• P&G: “We sell coffee” vs. “We sell canned coffee of moderate quality in groceries”
• The brand we have built to sell mid-tier coffee will not cater to gourmet coffee
position as its made of Robusta rather than Arabica beans. So we need to launch a
new brand that preempts the quality position. We may need a new design (DSD),
but we’ve done radical stuff before!
• Most restaurants, food chains and institutions sell Coke or Pepsi (branded) but
unbranded coffee. Once our gourmet brand is established in grocery stores, we may
be able to move into the institutional market (after all, we sell to Wal-Mart!)
• Whole bean provider: Could have built a brand by opening a café division. Took 7
years for Brothers to catch on. By opening the café format, regional whole bean
providers could have built brand loyalty. Especially as they do not have P&G’s deep
pockets. If the regional whole bean provider launched in 1991, could have built a
national brand. By 1994, it was too late.
• Starbucks: May have missed an opportunity by not aggressively expanding via
franchising. Region by region rollout gave competitors / imitators time to preempt in
certain markets. This way it would have “conquered” the retail business and could
have focused more fully on institutional and grocery markets.

109. Caselet-1
• While entering a developing country like India, MNCs should
consider the factors to which consumers in India are sensitive.
One such factor is price. Indian consumers are price sensitive.
They always looks for value of money. This explains the
success of Nirma washing powder which forced HLL to come
out with a low prices detergent Wheel. Also the success of a
product depends on the tastes and preferences of customers.
Once McDonald’s customized its products according to the
tastes and preferences of the Indian customers, it found
acceptability in the market. Thus, before entering the Indian
market, MNCs should do a proper study of the customers’
tastes and preferences , and this is particularly applicable to
food products, because in India, food habits differ from region
to region.

110. Caselet-2
• During recession, most companies resort to downsizing
and cutting costs related to advertising. But advertisement
plays a crucial role in creating demand for goods. So it is
not advisable to reduce costs related to advertising, rather
expenditure on advertisements should increase during a
recession. At this time, they build up their brands. If they
do so, the companies will be in a competitive position once
the recession is over and demand for goods picks up.
Brand – building always involves spending on
advertisements, packaging etc. Advertising during
recession is also advisable because it reminds consumers
about the product, and prevents the product from getting
erased from consumers’ mind.