key concepts of marketing

1. PREPARED BY:
NEERAJ SHARMA
MPHIL (MANAGEMENT)
KEY CONCEPTS OF MARKETING
&
FACTORS AFFECTING MARKET
DECISIONS

2. TOPICS TO BE COVERED…..
 What is market?
 Today’s Market Scenario
 What is Marketing?
 Marketing Process
 What Smart companies do?
 What contributed to the Renault Duster's success??
 Why Nokia fails..
 Factors affecting Market decisions
 Internal environment
 External environment

3. What is Market??
 In the words of layman
Market is a place where goods are physically present and we go
there for purchasing it.
For him, market is fish market, vegetable and fruit market, meat
market, grain market.
He thinks market is any geographical place where lots of goods are
present .
 But in actual, market is not necessarily a geographical location.
Products and services are purchased over the phone, through mail /
electronic mail, online through internet.
 Market is an arrangement in which two parties are involved:
One party(seller)who agrees to sell the goods.
Other party (buyer) who agrees to pay for the goods purchased

4. Today's Market Scenario
 Huge competition
 Buyers are price sensitive
 Buyers have high service expectations
 Buyers are quality conscious
 Buyers expect more features in the product.
To deal with these problems, the companies have to do
more efforts to understand the customer needs and to
satisfy them.
 In today’s economy, customer who buys the product is at
the center of business universe. Companies revolve
around the customer.

5. What is Marketing??
 Marketing is the sum total of all activities which aims at
identifying, satisfying and retaining the customers
 Marketing is getting and keeping the customer.
(Theodore Levitt)
 It begins before manufacturing
 It is much more than just selling stuff and collecting
money.
 Marketing has a long term perspective.
 It’s the connection between people and products,
customers and companies.

6. Marketing process
Market Research
Segmentation , Targeting and
Positioning
Marketing Mix
Implementation
Control

7. What Smart Marketing
companies do??
 They are improving their customer knowledge,
understanding customer economics and using customer
connection technologies
 they are inviting customers to co design the product
 they are using more targeted media and integrating
market communications to deliver a consistent message
through every customer contact
 They are reachable seven days a week and 24 hours a
day at their toll free no. and by emails.

8. What contributed to the
Renault Duster's success??
 "The Logan's failure reminded us of the importance
of understanding the customer, getting the product
right and positioning the Duster correctly at the time
of the launch," says Marc Nassif, Managing Director,
Renault India.
 The company identified a focus group of about 200
people whose profile matched the potential buyer of
the Duster.

9. The study threw up 41 modifications that the
European Duster needed.
 They understood that a critical purchasing factor of a car
in India is the exterior design
 People loved an SUV with rugged looks that stood out in
a crowd, but at the same time they wanted it to
operationally perform like a sedan - easy to drive and
offering good fuel efficiency.
 Inside the car they preferred a dual-tone interior, and
wanted the switches for power windows on the door
rather than in the central console.
 Indians preferred inclined seats for greater comfort.

10. Why Nokia fails..
 Fails to understand the customer’s
changing tastes and preferences.
 Unable to deliver the right message like
Strong value proposition of Nokia
mobile phones.

11. FACTORS AFFECTING MARKET
DECISIONS
 There are forces inside or outside the
company that affect marketing managements’
ability to build and maintain successful
relationships with target customers.
Marketing Environment
Internal
environment
External
environment

12. Internal/Micro environment
 Micro environment consists of the actors close to the
company and affect its ability to serve its customers
such as company , suppliers, market intermediaries,
customers, competitors and the public.
COMPANY
SUPPLIERSPUBLICS
MARKET
INTERMEDIARIESCOMPETITORS
CUSTOMERS
MARKETING

13. THE COMPANY
 In designing marketing plans, marketing management
takes other company groups into account such as top
management, finance, research and development,
purchasing, operations and accounting.
 Should work in harmony to provide superior customer
value and satisification
COMPANY’S
INTERNAL
ENVIRONMENT
TOP
MANAGEMENT
FINANCE PURCHASING PRODUCTION
RESEARCH
AND
DEVELOPMENT
ACCOUNTING

14. SUPPLIERS
Suppliers provide the resources needed by the
company to produce its goods and services.
 Important link in the value delivery system.
o Problems related with suppliers –
Shortages of supplies, delays in
supply, labor strikes.
o Marketers must maintain
the relations with multiple
suppliers

15. MARKETING
INTERMEDIARIES
Marketing intermediaries help the company
to promote, sell and distribute its products
to final buyers. They include-
 Resellers- Wholesalers, Retailers, Agents, Brokers,
Dealers
 Marketing service agencies - Advertising agencies,
Consultancy firms etc.
 Financial intermediaries - banks, insurance
companies etc.
 Physical distribution firms - Warehousing firms,
transportation firms.

16. CUSTOMERS
The company needs to study 5 types of customers
closely-
 Should identify the differences in customer
characteristics and segment the customers in
different groups.
TYPES OF
CUSTOMERS
CONSUMER
MARKETS
BUSINESS
MARKETS
RESELLER
MARKETS
GOVT.
MARKETS
INTERNATIONAL
MARKETS

17. COMPETITORS
Competitor means other business units which are
producing or marketing similar products or a very
close substitute of our product.
Cut throat competition in FMCGs like soft drinks,
detergents, shampoo, toothpaste etc.
• Must understand competitor’s strengths and
weaknesses.
• Must differentiate firm’s products and services
from those of competitors

18. THE PUBLIC
A public is any group that has an actual
or potential interest in or impact on an
organization ability to achieve its
objectives.
TYPES OF PUBLIC
FINANCIAL
PUBLICS
MEDIA
PUBLICS
GOVT.
PUBLICS
LOCAL
PUBLICS
INTERNATIONAL
PUBLICS

19. External /Macro Environment
 The forces that affect the
microenvironment. It includes-
ECONOMIC
FORCESCULTURAL
FORCES
POLITICAL
FORCES
MARKETING
TECHNOLOGICAL
FORCES
NATURAL
FORCES
 Considered to be beyond the control of organization
DEMOGRAPHIC
FORCES

20. DEMOGRAPHIC
ENVIRONMENT
 Demography is the study of human population
in terms of size, density, location, age, gender,
race, occupation etc.
Helps in market segmentation and targeting.
Demographic trends
o Changing Family structure
o Higher education level

21. ECONOMIC ENVIRONMENT
 consists of factors that affect consumer buying power and
spending patterns.
 Economic conditions affect the product planning, price
fixing, promotion policies etc.
 Distribution of income-
- upper class
- middle class
- working class
- underclass
 Various phases of trade cycles
 Employment level

22. NATURAL ENVIRONMENT
Natural environment involves the resources that
are needed as inputs by marketers or that are
affected by marketing activities.
The marketers must be aware of -
 Climatic and weather conditions –
Example - In hilly areas, jeeps are
in greater demand than cars
Natural calamities leads to shortages of raw
materials.

23. TECHNOLOGICAL
ENVIRONMENT
Technological discoveries and developments
create opportunities and threats in the
market like automobiles, T.V., personal
computers, cell phones etc.
o Rapid change in technology
o - shorter product life cycle
o Higher R & D budgets
o Increased competition

24. POLITICAL
ENVIRONMENT
Consists of laws, govt. agencies and
pressure groups that influence or limit
various organizations and individuals in
a given society.
 Increasing legislation
 Govt. policies for economic growth like
LPG , FDI policy , subsidies etc.

25. CULTURAL
ENVIRONMENT
 Includes Forces that affect a society’s basic
values, perceptionsand behaviours.
 Core cultural values
 Secondary cultural values.
 Cultural factors affects the marketing strategy,
promotion policies etc.
Differences in religion
Language differences

26. THANK
YOU