1. ADVANCED ADVERTISING
Marketing

2. WHAT EXACTLY IS “MARKETING”?

4. MARKETING
Marketing consists of the
strategies and tactics, used
to identify, create and
maintain satisfying
relationships with
customers that result in
value for both the customer

5. DISSECTING THE DEFINITION
 Strategies and tactics
Strategies – the direction marketing efforts take
over a period of time
Tactics – actionable steps or decisions made to
follow the strategies

6.  Satisfying relationships – Provide products and
services that customers want and make the
customers feel that they are partner in the
transaction, rather than just a source of revenue.
 Identify, create and maintain – Identify the
customers, create avenues to build relationship with
customers, and take steps to keep customers
satisfied and happy.

7.  Value for both customer and marketer – both the
customer and marketer gain benefit, not necessarily
monetary.

8. ROLE OF MARKETING
 Developing products that satisfy needs and
enhance society‟s quality of life.
 Creating a competitive environment that helps
lower product prices.
 Developing product distribution system to provide
product to a large number of customers and many
geographic locations
 Building demand for products that require
organizations to expand labor force

9. MARKETING MIX
 A planned mix of the controllable elements of the
product‟s marketing plan.
 They are adjusted until the right combination of the
elements is found to serve the needs of the
consumer and generating income for the
organization

10. ELEMENTS OF THE MARKETING MIX
Product
Promotio Marketing
Price
n mix
Place

11. PRODUCT
 The actual goods or services made for consumers
according to their needs and requirements.
 Supporting elements like warranties and
guarantees are also included in Product.
 Every product goes through a cycle called product
life cycle. At each stage different strategies are
used.

12. PRODUCT LIFE CYCLE
Introduction Growth Maturity Decline Withdrawl

13. PLC - INTRODUCTION
 The product is introduced in the market.
 No pressure of immediate profit.
 Awareness for product is created.
 Generally no competitors at this stage.

14. PLC - GROWTH
 Competitors enter the market with similar products.
 Products become profitable.
 Advertising spend is high.
 Companies focus on brand building
 Market share tends to stabilize.

15. PLC - MATURITY
 Sales grow at a decreasing rate and then stabilize.
 Companies attempt to differentiate products using
branding.
 Price wars and intense competition occurs.
 Market becomes saturated.
 Some producers leave the market due to small
profit margins.
 Promotion is widespread and media usage is high.

16. PLC - DECLINE
 More innovative products have entered the market.
 Consumers tastes have changed.
 Intense price –cutting
 Marketing spend is decreased.

17. PLC - WITHDRAWL
 Products are finally removed from the market,
producers move on to other businesses.

18. ELEMENTS OF THE MARKETING MIX
Product
Promotio Marketing
Price
n mix
Place

19. PRICE
The process of setting a price
for a product, including all
kinds of incurred costs like
production cost, manufacturing
cost, storage cost, discounts to
be offered etc.

20. PRICING STRATEGIES
 Four basic strategies
 Premium pricing
 Penetration Pricing
 Economy Pricing
 Price Skimming

21. PREMIUM PRICING
 Use a higher price where there is a uniqueness
about the product or service.
 Used when a substantial competitive advantage
exists.
 Such prices are charged for luxuries.

22. PENETRATION PRICING
 The price charged for products and services is set
artificially low in order to gain market share.
 Once it is achieved , the price is increased.
 E.g. Habeeb masala used low introductory prices .

23. ECONOMY PRICING
 A no frills low price.
 The cost of manufacturing and marketing are kept
at a minimum.

24. PRICE SKIMMING
 Charge a high price because you have a
substantial competitive advantage.
 This high price tends to attract new competitors into
the market.
 As a result price of the product falls due to
increased prices
 E.g telecom services

25. OTHER PRICING STRATEGIES
 Psychological pricing
 Product line pricing
 Optional product pricing
 Captive product pricing
 Product bundle pricing
 Promotional pricing
 Geographical pricing
 Value pricing

26.  Psychological pricing
 Used when marketer wants the consumer to respond on an
emotional basis rather than a rational basis.
 E.g. 99 rupees only as compared to Rs.100
 Rs. 399 instead of Rs.400
 Product line pricing
 When there is a range of services the pricing reflects the
benefits of parts of the range.
 E.g hair cut – Rs. 300, protein treatment – Rs. 400, whole
package – Rs. 700

27.  Optional product pricing
 Companies will start to increase the amount the customer
spends once they start to buy, by offering them the optional
but tempting “extras”.
 E.g extra cheese for Rs.50 on a Rs.1100 pizza
 Captive product pricing
 The basic product is charged low. The accessories/refills/re
usable parts are priced using premium pricing strategy
 E.g. a different charger for Samsung cellphones.
 Product bundle pricing
 Sellers combine several products in the same package.
 Usually used to move old stock.

28.  Promotional pricing
 Price used to promote a product.
 E.g. buy one get free
 Geographical Pricing
 Price varies in different geographical regions
 E.g. fast food items
 Value pricing
 When external factors like recession or increased competition
force companies to provide „value‟ products and services to
retain sales.
 e.g. value meals at McDonalds

29. ELEMENTS OF THE MARKETING MIX
Product
Promotio Marketing
Price
n mix
Place

30. PLACE
 Also called channel, distribution or intermediary.
 The mechanism through which goods or services
are moved from the manufacturer/ service provider
to the user or consumer.

31. 6 BASIC CHANNEL DECISIONS
 1. Do we use direct or indirect channels? (direct to
consumerr or indirect through a wholesaler)
 Single or multiple channels
 Cumulative length of the multiple channels
 Types of intermediary
 No of intermediary at each level
 Which companies as intermediaries to avoid
„intrachannel‟ conflicts (e.g. fighting between local
distributors)

32. SELECTION CONSIDERATION
How to select a distributor:
 Market Segment
 Distributor must be familiar with your target consumer
and segment
 Changes at different PLC stages
 In introductory phase, product may be available at
specific locations. In maturity, at many generic locations.

33. CHANNEL INTERMEDIARIES
 Wholesalers
 Purchase bulk, break down into packages, resell to
retailers and have storage facilities
 Reduce producer to consumer contact, take some of
marketing responsibilities.
 Agents
 Secure orders for producer and take commission, do
not purchase product. Usually used in international
markets.

34. CHANNEL INTERMEDIARIES
 Retailers
 Have a stronger personal relationship with the
consumer.
 Holds several brands and products, hence consumer is
exposed to several products.
 Are a strong brand themselves , e.g. Makro, Metro,
Imtiaz…
 Internet
 Geographically dispersed market.
 Product reaches a wide audience
 Set up costs are low.
 Use e-commerce for payment.

35. ELEMENTS OF THE MARKETING MIX
Product
Promotio Marketing
Price
n mix
Place

36. PROMOTION
Different activities held to
promote the product to the
target audience

37. PROMOTION MIX
Personal
Selling
Sponsorship Sales Person
Promotion
Mix
Public
Advertising
Relations
Trade Fairs Direct Mail

38. PERSONAL SELLING
 Effective way to manage personal customer
relationships.
 The sales person acts on the behalf of the
organization
 They contact consumers personally and motivate
them to buy a product.

39. SALES PROMOTION
 All kinds of promotions except advertising, personal
selling and public relations.
 E.g
 buy one get one free
 Coupons
 Money off promotions
 Introductory offers
 Free accessories
 Should be carefully costed and compared with the
next best alternative

40. PUBLIC RELATIONS
 Deliberate, planned, sustained effort to establish
and maintain mutually beneficial relationship
between an organization and it‟s publics.
 Cheaper than other promotional elements.

41. DIRECT MAIL
 Customers are targeted based upon a database.
 An email or snail mail is sent directly to customers
in the specific target market, with the expectation
that some of them will place an order.
 E.g. Medical students can be sent a mail regarding
medical textbooks.

42. TRADE FAIRS AND EXHIBITIONS
 Used to meet companies to meet with both the
trade and the consumer
 Intention is to create an impression rather than sell
the product.
 Exhibitions are good for making new contacts and
renewing old ones.

43. ADVERTISING
 „Paid for‟ communication
 Used to develop attitudes, create awareness, and
transmit information in order to gain response from
the target market.
 Advertising media such as newspapers,
magazines and journals, televsion, etc.

44. SPONSORSHIP
 When an organization pays to be associated with a
particular event, cause or image.
 Companies sponsor sports events like Olympics or
Formula One, or TV shows etc. e.g Olper‟s
associated with morning shows, Kisan pak raha hay
kia etc.
 The attributes of the event are then associated with
the sponsoring organization.