E2-E3

MANAGEMENT

MARKETING FUNDAMENTALS

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 WELCOME

This is a presentation for the E2-E3 Management

Module for the Topic: Marketing Fundamentals.
Eligibility: Those who have got the upgradation to from
E2 to E3.
This presentation is last updated on 15-3-2011.
You can also visit the Digital library of BSNL to see this
topic.

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 AGENDA
What is Marketing?
Needs, Wants and Demands
Product and Service
Characteristics of Services
Marketing Mix
Marketing vs. Sales
SWOT and STP Analysis
Marketing Strategies
Marketing in BSNL

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 What is Marketing?
Marketing is the performance of business activities
that directs the flow of products or services from
producer to customers or consumers.

The process of planning and executing the

conception, pricing, promotion, and distribution of
ideas, goods, and services to create exchanges that
satisfy individual and organizational goals.

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 Needs, Wants and Demands
Needs :
The most basic concept underlying marketing is that of
human needs.
They include basic physical needs for food, clothing,
warmth and safety, social needs for belonging and
affections and individual needs for knowledge and self
expression.
These needs are not invented by marketers; they are a
basic part of the human make up.

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Needs, Wants and Demands (Contd..)
Wants :
Wants are products satisfying human needs and they
are shaped by culture and individual personality.
A hungry person in Bihar might want Roti, in West
Bengal might want Rice and for South Indian people it
may be Idli or Dosha.
Wants are described in terms of products/services that
will satisfy needs.

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 Needs, Wants and Demands
Demands :
People have almost unlimited wants but limited
resources. Thus they want to choose products that
provide the most value and satisfaction for their
money. When backed by buying power, wants
become demands.
BSNL Broadband and Leased Line Circuit has more
demand compared to other operators product.

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 Product and Service
A product is something tangible that can be offered to a
market to satisfy a need or want.
The concept of product is not limited to physical objects
anything capable of satisfying a need can be called a
Product.
Products physical distinctions include :
Form, Features, Performance Quality, Conformance
Quality, Durability, Reliability, Repairability, Style, design
etc.

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 Product and Service (Contd..)
A service is any activity or benefit that one party can
offer to another that is essentially intangible and
does not result in the ownership of anything.
Products service distinction include :
Ordering ease, Delivery, Installation, Customer
training, Customer Consulting, Maintenance and
Repair.

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 Characteristics of Services

Services are characterized by following distinctions:

Intangible: Customer cant see, touch, smell or
handle services before deciding whether to buy.
Inseparable: Services are usually delivered and
consumed simultaneously, so both provider and
the buyer influence the outcome of the service
delivery.

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Characteristics of Services(Contd..)

Heterogenous: Services vary depending on who

provides them and when and where they are
provided; thus controlling their quality is difficult.
Perishable: Services are used up upon delivery,
not stored for future sale.

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 Marketing Mix

There are standard four Ps applicable for

Products. Service Marketing require extra three,
totaling seven and known together as the
extended Marketing Mix.

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 Marketing Mix(Contd..)

The Seven Ps are :-

Product
Pricing
Promotion
Place
People
Process
Physical Evidence

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 Marketing Mix(Contd..)

Product : Product variety, quality, design, packaging,

features, Brandname, Sizes, Services etc. a budle of
benefits which gives a solution.
Pricing : List price, Discounts, Allowances, Payment Period
etc.
Promotion : Advertising, Personal selling, Sales Promotion,
Public relations, Direct selling etc.
Place : Channels, location, inventory, logistics etc.

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 Marketing Mix(Contd..)

People : Customer, supplier, vendor,

employees etc.
Process : How of product/service delivery.
Standardization, checklists etc.
Physical Evidence : Looks of Customer
Service Centre, Testimonials, Demonstrations
etc.

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 Marketing Vs. Sales

Marketing and Sales are often said to be the

sides of the same coin.Both are interrelated.
Marketing brings the people forward for
purchase, sales actually converts these
interested people into customers.

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Marketing Vs. Sales(Contd..)

Sales by closing deals, marketing by

supporting sales and increasing brand
awareness.

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 SWOT Analysis

SWOT :-
S : Strength (HR, Network, Customer Relations etc.)
W :Weakness (Planning, Mind setup, CRM etc.)
O :Opportunities (New Business, Customer Base,
Expansive Economy etc.)

T : Threats (Recession, Competition etc.)

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 STP Analysis

STP :-
S: Segmentation (Geographic, Demographic,
Psychographic, Behavioral)
T: Targeting (Mass Market, CIC, Enterprise
Customers etc.)
P: Positioning (Competitive price, more value
etc.)

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 Marketing Strategies

Marketing strategy is a method of focusing an

organizations energies and resources on a course of
action which can lead to increased sales and
domination of a target market niche.
A marketing strategy combines product development,
promotion, distribution, pricing, CRM and other
elements.

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Marketing Strategies(Contd..)

Proper utilization of 7 Ps.

Study of Product Life Cycle(PLC) of a product.
Product Life Cycle

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 Marketing Strategies(Contd..)
Stage Introduction Growth Maturity Decline

Marketing Gain awareness Stress Maintain brand Harvesting/

Objective differentiation loyalty withdrawal

Competition Few More Many Few

Product One More versions Full range Best sellers

Price Skimming/ Competitive/ Loyalty schemes/ Stay profitable

penetration Gain market share Defend market
share/profit

Promotion Inform/ Stress competitive Reminder oriented Minimal promotion

educate differences

Place (Distribution) Limited More outlets Maximum outlets Fewer outlets

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 Marketing in BSNL

Marketing section started functioning in

November, 2000 at BSNL Corporate office.
BSNL has Marketing Cells in each verticals i.e.
CFA, CM and Enterprise.
Mr. Abhinav Bindra is brand ambassador of
BSNL.

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 Marketing in BSNL(Contd..)

BSNL regularly participates in local and national

exhibition and melas.
Road shows are also organised.

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 Marketing in BSNL(Contd..)
An indicative Interaction Map of Marketing with other Units :
TRA (Billing details, tariff Call center relation
(Content, Information, CSR Scripts, IVR
analysis, plan based tariff scripts, telemarketing, training etc.)
profiling, collection details etc.)
Loyalty schemes
Maintenance (Breakdowns, Brochures, Posters, mailers,
suggestions, Indoor, Outdoor, Dress code for staff

Marketing Function
MSC, BTS etc.
Advertisements (Brand ambassador,
Print, electronic, Outdoor,
Senior Management
internet etc.)
Planning (New areas being New services, New/modification in
covered, expansion plans etc.) tariff plans

Sales (New outlets, promotion needs, Point of purchase material (Cutouts,

feedback reports, schemes etc.) Glow signs, Danglers, showroom
design etc.)
Commercial (New plans, terms &
condition etc.) Content for Website/portal

Market Intelligence (News gathering, Inputs to TRA, Planning, Sales,

informers, competitor details etc.) Commercial, Top management
Market Research (Brand, Market Events (conferences, seminars,
Potential, Needs etc.) exhibitions, interviews etc.)

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 Conclusion

Lot of effort has been made by BSNL in retaining

& strengthening its market position.
In spite of heavy growth in BSNL subscriber base
from 2.5 crore to over 9 crore since its formation,
its market share is on the decline.

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 Conclusion(Contd..)

Mergers & acquisitions are helping competitors to

improve their market share.
While certainly a comprehensive internal &
external marketing strategy for BSNL is needed
to check this trend, procedural changes and more
functional autonomy may also be required.

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For internal circulation of BSNL only