Ravi Kiran

What is Marketing??
Selling?
Advertising? Promotions? Making products available in stores? Maintaining inventories? It is much more..

Insights
In China, a German businessperson is driving a Lexus; hes wearing Reebok shoes, Irish cashmere socks, a Reid and Taylor suit, with a Gucci belt. He has a Mont Blanc pen, in his Italian shirt. Hes going to meet an American investor at a KFC restaurant, for a Coke. After lunch, they stop for a Baskins-Robbins ice cream sundae. When he gets home, he has an vodka, while listening to American country western music.

Marketing
Marketing deals with identifying and meeting human and social needs. "meeting needs profitably.
Marketing is the process of planning and executing

the conception, pricing, promotion, and distribution of ideas, goods, services to create exchanges that satisfy individual and organizational goals
American Marketing Association

Simple Marketing System

Communication

Goods/services

(a collection of sellers)
Money

Industry

(a collection of Buyers)

Market

Information
5

The 4 Ps & 4Cs

Marketing Mix Convenience

Product

Place

Customer Solution

Price

Promotion

Customer Cost

Communication

Difference Between - Sales & Marketing ?

Sales
trying to get the customer to want what the company produces

Marketing
trying to get the company produce what the customer wants

Difference Between - Sales & Marketing ?

For a managerial definition, marketing has often been

described as "the art of selling products, Selling is only the tip of the marketing iceberg

Scope What do we market

Goods
Services Events

Personalities
Place Organizations Information Ideas and concepts

Movie Marketing
The Posters
The Trailers Online Advertising and Cross-Promotions Media and Publicity Reviews

Transformers: Dark of the Moon (also known as Transformers 3) is a 2011 American science fiction-action film. It is the third film of the liveaction Transformers film series, directed by Michael Bay and produced by Steven Spielberg.
It is the sequel to Transformers and Transformers: Revenge of the Fallen and was released on June 29, 2011

Transformers
Most of the characters returned for Hasbro's new toy-

line, which came out on May 16, 2011. In October 2010, Entertainment Tonight previewed the behind-the-scenes filming in Chicago. Following that, the official film website was changed with the logo and the release date under it. A two-minute trailer was announced on November 27, and was posted to the web on December 9, 2010. A thirty-second television advertisement for the film aired during Super Bowl XLV on February 6, 2011.

Marketing
In a nod to the burgeoning 3-D film market, the

company introduced a Transformers 3-D mask. The $9.99 mask allowed children to watch 3-D movies in super fan style, without using the clunky glasses typically handed out at movie theaters. Hasbro unveiled its new KREO line, their version of building blocks targeted squarely at the LEGO audience. The KREO line of toys is launching with a Transformersthemed version. Transformers' products boost Hasbro profit 23%

Transformers
The first full theatrical trailer was released on April 28,

2011. A 3D trailer was released on May 20, 2011 with the release of Pirates of the Caribbean: On Stranger Tides 3D, which would complete the promotional campaign for Dark of the Moon. The very first clip was released on May 18. A second clip was released the next day on May 19. The promotional costs brought the cost of producing and marketing the film to a total of $270 million.

Marketing
Transformers: Dark of the Moon premiered at the

Moscow International Film Festival on June 23, 2011. Linkin Park performed a special outdoor concert in Red Square in Moscow on the same night in celebration of the event. Initially scheduled to be released on July 1, 2011, the release was brought forward to June 28, 2011.

Marketing
Sound Track:

The album was released on June 14, 2011. Linkin Park's song "Iridescent" is the lead single for the film, continuing the streak of the band's songs as the theme songs of the film series.
The single follows "What I've Done" being used in the

2007 film, and "New Divide" for the 2009 film.

Marketing
Novelizations

In May 2011, the novelization, junior novel and graphic novel of Transformers: Dark of the Moon were released.
Video game

Activision developed a video game for the Xbox 360, PlayStation 3, Wii, Nintendo DS and Nintendo 3DS.

Core Concepts of Marketing

Needs, wants demands Utility, Value & Satisfaction

Products

Markets

Marketing & Marketers

Xchange, Transaction Relationships

20

Core Concepts of Marketing

Need food ( is a must )

Want Pizza, Burger, French fry's (translation of a need as per our experience )

Demand Burger ( translation of a want as per our willingness and ability to buy )
Desire Have a Burger in a five star hotel

Who Markets?
A marketer is someone who seeks a response

(attention, a purchase, a vote, a donation) from another party, called the prospect. If two parties are seeking to sell something to each other, we call them both marketers.

Who Markets?
Marketers are skilled in stimulating demand for a

company's products. Just as production and logistics professionals are responsible for supply management, marketers are responsible for demand management. Marketing managers seek to influence the level, timing, and composition of demand to meet the organization's objectives.

Marketing
Who you are vision, values, identity, brand, image,

reputation. What you have products/services, prices, promotions, distribution, people, facilities, goodwill, financials, competencies. What you do set goals, gather information, target markets, create strategy and tactics, assess competition, spend money, make sales, etc. To get and keep customers relationships and returns.

Marketing Triangle
Customers

Company

Competition

CUSTOMER
CUSTOMER IS . . . . .
Anyone who is in the market looking at a product

/ service for attention, acquisition, use or consumption that satisfies a want or a need

Customer
CUSTOMER has needs, wants, demands and

desires Understanding these needs is starting point of the entire marketing These needs, wants arise within a framework or an ecosystem Understanding both the needs and the ecosystem is the starting point of a long term relationship

How Do Consumers Choose Among Products & Services?

Value - the value or benefits the customers gain from

using the product versus the cost of obtaining the product.

Satisfaction - Based on a comparison of performance

and expectations.
Performance > Expectations => Satisfaction Performance < Expectations => Dissatisfaction

Customers - Problem Solution

As a priority , we must bring to our customers

WHAT THEY NEED

We must be in a position to UNDERSTAND their

problems
Or in a new situation

to give them a chance to

AVOID the problems

Customer looks for Value

Value
Benefit

= Benefit / Cost
= Functional Benefit + Emotional Benefit

Cost

= Monetary Cost + Time Cost + Energy Cost + Psychic Cost

Competitors
Who are your competitors?
What are their strengths and weaknesses? What have been their strategies?

How are they likely to respond to your Marketing plan?

 Consumer

KEY CUSTOMER MARKETS

Markets: Companies selling mass consumer goods and services such as soft drinks, cosmetics, air travel, and athletic shoes and equipment spend a great deal of time trying to establish a superior brand image. Much of a brand's strength depends on developing: a superior product and packaging, ensuring its availability, and backing it with engaging communications and reliable service.

KEY CUSTOMER MARKETS

Business Markets: Companies selling business goods and services often face well-trained and well-

informed professional buyers who are skilled in evaluating competitive offerings. Business buyers buy goods in order to make or resell a product to others at a profit. Business marketers must demonstrate how their products will help these buyers achieve higher revenue or lower costs. Advertising can play a role, but a stronger role may be played by the sales force, price, and the company's reputation for reliability and quality.

KEY CUSTOMER MARKETS

Global Markets: Companies selling goods and services in the global market place face additional decisions and challenges. They must decide which countries to enter; how to enter each country (as an exporter, licenser, joint

venture partner, contract manufacturer, or solo manufacturer); how to adapt their product and service features to each country; how to price their products in different countries; and how to adapt their communications to fit different cultures.

KEY CUSTOMER MARKETS

Nonprofit and Governmental Markets: Companies selling their goods to nonprofit organizations such as churches, universities, charitable organizations, or government agencies need to price carefully because these organizations have limited

purchasing power. Lower prices affect the features and quality that the seller can build into the offering. Much government purchasing calls for bids, with the lowest bid being favored, in the absence of extenuating factors.

Types of Demand
Eight demand states are possible: 1. Negative demand- Consumers dislike the product with negative image or connotations, such as those associated with unfair labor policies or the practices that harm the environment. In some cases, consumers are willing to pay a little more in order to switch their allegiance from one product or firm to another. Eg: People have a negative demand for Vaccination, Dental work, Gall bladder operation Employers feel a negative demand for: Ex-convicts Alcoholics

Types of Demand

The marketing task is to analyse, why the market

dislikes the products? They need to focus on a PR campaign as well as find suitable industry friendly distribution channels for market delivery. Heavy media advertising will need to be used to differentiate the product/services from the others and introduce the new brand into the market.

Types of Demand
2. Nonexistent demand - Consumers may be unaware or uninterested in the product. Target consumers may be uninterested in the product. Ex People have no demand for Farmers may not be interested in new farming methods College students may not be interested in a foreign language course. The marketing task is to find ways to connect the benefits of the products to the persons natural needs and interests.

Types of Demand

3. Latent demand - Consumers may share a strong need that cannot be satisfied by an existing product. Latent demand for harmless cigarettes. Safer neighborhood. More fuel efficient cars. The marketing task is to measure the size of the potential market and develop effective goods and services that would satisfy the demand.

Types of Demand
4. Declining demand - Consumers begin to buy the product less frequently or not at all. A substantial drop in the demand for products. Boy scout enrolment among Indian students. The marketing task is to: Analyse the cause of market decline. Determine whether the demand can be re-stimulated by changing target markets, changing product features and developing more effective goods. To reverse the declining demand through creative remarketing of the product. In the campaign(s) strategize on newer logos, slogans,

Types of Demand
5. Irregular demand - Consumer purchases vary on a seasonal, monthly, weekly, daily, or even hourly basis causing problems of idle capacity or overcrowded capacity. Markets :- visited on weekends, not on weekdays. Hospitals :- OTs booked for early week The marketing task is called Synchro Marketing (alter pricing, promotion & other incentives)

Types of Demand
6. Full demand - Consumers are adequately buying all products put into the marketplace. Organizations face full demand when they are pleased with there volume of business. The marketing task is to: Maintain the current level of demand in the face of changing consumer preferences and increasing competition. Quality should be improved. Continuously measure consumer satisfaction. Eg: Maruti at the time of bookings made open.

Types of Demand
7. Overfull demand - More consumers would like to buy the product than can be satisfied. Some organizations face a demand level that is higher then they can or want to handle. Marketing task is De-marketing which requires finding ways to reduce the demand temporarily or permanently. Steps involved in de-marketing: Raising prices. Reducing promotion and service. Selective de-marketing(less profitable markets) Eg: Quota system for new car registration by a fixed percentage annually.

Types of Demand
8. Unwholesome demand - Consumers may be attracted to
products that have undesirable social consequences. Unwholesome products will attract organized effort to discourage their consumption. Un-selling campaigns have been conducted against cigarettes, alcohols, hard drugs, handguns and pirated movies.

So the marketers must identify the underlying cause(s) of the demand state and then determine a plan for action to shift the demand to a more desired state.

Demand Shock
A demand shock is a sudden event that increases or

decreases demand for goods or services temporarily. A positive demand shock increases demand and a negative demand shock decreases demand. Demand shocks can originate from changes in things such as tax rates, money supply, and government spending. For example, taxpayers owe the government less money after a tax cut, thereby freeing up more money available for personal spending. When the taxpayers use the money to purchase goods and services, their prices go up.

Role of Marketing
"deliver a higher standard of living.
Marketing is a societal process by which individuals

and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others.

How Business and Marketing Are Changing

Changing technology
Deregulation/Liberalization Privatization Globalization Customer empowerment Customization Heightened competition Retail transformation

The Marketing Concept

The marketing concept emerged in the mid-1950s. Instead

of a product-centered, "make-and-sell" philosophy, business shifted to a customer-centered, "sense-and-respond" philosophy. Instead of "hunting," marketing is "gardening. The job is not to find the right customers for your products, but the right products for your customers.

PUMA
German athletic footwear company Puma has used holistic

marketing to bring its product back from being a sentimental mainstay of the 1970s to one of the trendiest athletic shoes around. Puma uses multiple marketing approaches that work synergistically to set Puma apart as an edgy, trend-setting brand. Puma designs products with distinct customer groups in mind such as snowboarders, car racing fans, and yoga enthusiasts using market research generated by its retailer partners. Puma also targets the armchair athleteits two most popular models are the Mostro, a walking shoe with a nubbed wraparound sole, and the Speed Cat, a flat $65 sneaker modeled on shoes worn by Formula One race car drivers.

PUMA
It generates word of mouth or "viral marketing" by clever

promotionsfrom partnering with BMW/Mini, Terence Conran Design Shop, and the Jamaican Olympic teamor holding promotional events at sushi restaurants during the 2002 World Cup to outfitting Serena Williams and showcasing products in well-chosen TV shows and movies. The approach is working: Puma's sales have increased for 10 straight years from 1994 to 2004, tripling in total. Viral Marketing: A method of product promotion that relies on getting customers to market an idea, product, or service on their own by telling their friends about it, usually by e-mail.

PUMA
Terence Conran is one of the world's best-known designers,

restaurateurs and retailers. Born in 1931, he founded the Habitat chain, which brought good, modern design within reach of the general population.
PUMA used a less is more approach by removing the bells,

whistles, and traditional running shoe reinforcements and replacing them with a new lightweight system called BioRide. This technology has 3 integrated parts Rocker, Flex, and Groove that work together to create a more natural running rhythm.

HOLISTIC MARKETING
Utilizing the body, mind and spirit of both the

marketers and customers To bring them into a lasting marketing relationship For greater marketing success

Holistic marketing
A marketing strategy that is developed by thinking about the

business as a whole, its place in the broader economy and society, and in the lives of its customers. It attempts to develop and maintain multiple perspectives on the companys commercial activities. Implementation of marketing programs, processes, and activities that recognizes their breadth and interdependencies. Holistic marketing recognizes that "everything matters" with marketing and that a broad, integrated perspective is often necessary. Four components of holistic marketing are relationship marketing, integrated marketing, internal marketing, and social responsibility marketing.

RELATIONSHIP MARKETING
Increasingly, a key goal of marketing is to develop deep,

enduring relationships with all people or organizations that could directly or indirectly affect the success of the firm's marketing activities. Relationship marketing has the aim of building mutually satisfying long-term relationships with key parties customers, suppliers, distributors, and other marketing partners

INTEGRATED MARKETING
The marketer's task is to devise marketing activities and

assemble fully integrated marketing programs to create, communicate, and deliver value for consumers. The marketing program consists of numerous decisions on value-enhancing marketing activities to use. Marketing activities come in all forms. One traditional depiction of marketing activities is in terms of the marketing mix, which has been defined as the set of marketing tools the firm uses to pursue its marketing objectives.

INTERNAL MARKETING
Holistic

marketing incorporates internal marketing, ensuring that everyone in the organization embraces appropriate marketing principles, especially senior management. Internal marketing is the task of hiring, training, and motivating able employees who want to serve customers well. Smart marketers recognize that marketing activities within the company can be as important as, or even more so than, marketing activities directed outside the company.

Social Responsibility Marketing

Holistic

marketing incorporates social responsibility marketing and understanding broader concerns and the ethical, environmental, legal, and social context of marketing activities and programs. The cause and effects of marketing clearly extend beyond the company and the consumer to society as a whole. Social responsibility also requires that marketers carefully consider the role that they are playing and could play in terms of social welfare.

Why Market Leaders Suffered ?

HMT

vs. Titan
Nirma

HLL vs. Bajaj

vs. Honda

Market

leadership today cannot be taken for granted. New and more efficient companies are able to upstage leaders in a much shorter period.