Description
According to AMA (American marketing Association) -Marketing is an organizational function and a set of processes for creating ,communicating and delivering value to customers and for managing customers relationship in a way that benefit the organization and its stakeholders
Introduction to marketing
Prepared BY: Prof. Hitesh Kumar Kar.
• According to AMA (American marketing Association) -
Marketing is an organizational function and a set of
processes for creating ,communicating and delivering
value to customers and for managing customers
relationship in a way that benefit the organization and
its stakeholders.
• According to Phillip Kotler--Marketing is a societal
process by which individuals and groups obtain what
they need and want through creating, offering and
exchanging products and services of value with others.
Marketing is a business process by which products are
matched with the business requirement.
A market can be viewed as any person,group or
organization with which an individual,group or
organization has an existing or potential exchange
relationship.Key customer markets include:
a.Consumer market
b.Business market
c.Global market
d.Non profit and Govt market
What can be marketed
• Goods
• Services
• Event
• Experience
• Persons
• Places(Blr-Silicon Valley, Kerala-Gods own country)
• Properties (Real properperty,Financial property)
• Organization
• Information
• Ideas
How business and marketing are changing
• Changing Technology
• Globalization
• Deregulation
• Privatization
• Customer empowerment
• Customization
• Retail transformation
Evolution of marketing concept
• Production concept (wide availability,less
expensive)
• Product concept (Quality products with
innovative features)
• Selling concept
• Marketing concepts
• Societal marketing concept
• Holistic marketing—(Internal marketing,IMC,
relationship marketing,socially responsive marketing)
• Needs,wants and Demand explanation
A need can be defined as a felt state of deprivation of
some basic satisfaction.
The specific satisfier that an individual looks for defines
the want.
Demand– want + willingness to pay + ability to pay
• Marketing Myopia-Marketing myopia occurs
when marketer focuses on the product rather
than the customer’s Requirement. (Given by-
Theodore Levitt)
• McCarthy classified marketing mix variables
in terms of 4Ps
roduct,price,place
,Promotion
Product Decision:
Brand name functionality
Styling,Quality,safety,packaging,warranty etc.
Price Decisionricing is the only variable that
can be altered very quickly.It includes dealer
price,retail price,discounts,credit
terms,allowance etc directly influences the
development of marketing strategy.
Product Decision:
Brand name functionality
Styling,Quality,safety,packaging,warranty etc.
Price Decisionricing is the only variable that
can be altered very quickly.It includes dealer
price,retail price,discounts,credit
terms,allowance etc directly influences the
development of marketing strategy.
• Distribution:It focus on making the product
available in adequate quantities at places
where customers are normally expected to
shop for them to satisfy their needs.
• Promotion
• Lauterborn’s 4Cs classification : Customer
benefit , Customer Convinces ,Customers
Cost,customer Communication
Marketing Mix
Product :: Design , Development , Variety , Quality, Features ,
Packaging ,Branding ,Services ,Warranties
Price : Cost , Competetive price , Discounts &
allowance , Credit terms & discounts & allowances
Place : Channel distribution,channel
coverage,inventory management,Distribution
logistics, Storage & ware housing
Promotion: Advertisement,sales promotion,direct
marketing,tele marketing,tele marketing,publicity,PR
• Service Marketing Mix-
a.Product
b.Price
c.Place
d.Promotion
e.People
f.Process
g.Physical evidence
• Services may be defined as an intangible activity
performed by persons or machines or both for the
purpose of creating value perceptions among
consumers.
• The following are the difference between goods and
services.
1.Services are intangible. Goods are tangible.
2.Services are heterogeneous .Goods are
homogeneous.
3.Services are produced in buyer-seller interactions.
Goods are produced in the factory.
4.Production,distribution & consumption takes place
simultaneously in the case of services. In the case of
goods, the three are separate and independent
functions.
5.Consumers are co-producers in services. Customers
do not generally participate in the production of
goods.
6.Services cannot be stored. Goods can be stored.
7.In the sale of services, transfer of ownership will not take
place where as in the case of goods it does not take
place.
So in brief services have basically six characteristics.
a.Intangibility,
b. Inseparability ,
c. Variability,
d. Perishability
e. Customer participation
f. No ownership transfer
Diff between Marketing and selling
Marketing
1.Marketing focuses on customers needs of want satisfying
products.
2. Emphasis is given on product planning & development to
match products with the market.
3.Customer is treated as a king . He is given supreme importance.
4.Marketing aims at profits through customer satisfaction.
5.The principle of caveat vendor (Let the seller be alert) is
followed.
6.Integrated approach of marketing is followed.
Selling
1.Selling focuses on seller’s need of converting his products into
cash.
2.Emphasis is placed on sale of products already produced.
3.Seller enjoys supreme importance.
4.Selling aims at profits through sales volume.
5.The principle of caveat emptor (Let the buyer be alert) is
followed.
6.Fragmented approach to selling is followed.
Functions of Marketing Manager
Key responsibilities of the marketing manager vary according to
the business but can include:
• Instilling a marketing led ethos throughout the business
• Researching and reporting on external opportunities
• Understanding current and potential customers
• Managing the customer journey (customer relationship
management)
• Developing the marketing strategy and plan
• Management of the marketing mix
• Managing agencies
• Measuring success
• Managing budgets
• Ensuring timely delivery
• Writing copy
• Approving images
• Developing guidelines
• Making customer focused decisions
Market research
• Marketing managers need to have a good knowledge of the
customer. This means building up an accurate picture using the
resources that are available. It is important to take personal
opinion out of as many decisions as possible – you probably
don't think in the same way as a typical customer. Information
can be gathered from questionnaires, focus groups, the
internet, interviews, buying habits and many more sources, but
it's important that the information is examined in a scientific
way using proper statistical methods. Gut feel can only take
your business so far.
Marketing Process
• Under this marketing concept, the firm must find a
way to discover unfulfilled customer needs and bring
to market products that satisfy those needs . The
process of doing so can be modeled in a sequence of
steps . The situation is analyzed to identify
opportunities, the strategy is formulated for a value
proposition , tactical decisions are made , the plan is
implemented and the results are monitored . The four
steps involved are as follows:
• Situation Analysis
• Marketing strategy
• Marketing Mix Strategy (Tactical decisions)
• Implementation &Control
a. Situation Analysis : A through analysis of the situation in
which the firm find itself serves as the basis for identifying the
opportunities to satisfy unfulfilled customer needs.In addition
to identifying customer needs, the firm must understand its
own capabilities and the environment in which it is
operating.The situation analysis thus can be viewed in terms
an analysis of the external environment and internal analysis of
the firm itself.The external environment can be viewed in the
form of macro environment and micro environment is related
to the situation of the firm.
If the situation analysis reveals gaps between what consumers
want and what currently is offered to them ,then there may be
opportunities to introduce products to better satisfy those
consumers . There are several frameworks that can be used to
add structure to the situation analysis. Some of the popular
frameworks are as follow:
1.5C analysis
(Company, Customer, Competitors , Collaborators and Climate)
2.Pestle Analysis
(Political, Economical, Social, Technological, Legal &
environmental)
3.Swot Analysis (Strength , Weakness , opportunity and threats)
b. MARKETING Strategy :Once the best
opportunity to satisfy unfulfilled customers need is
identified, a strategic plan for for pursuing the
opportunity can be developed. MR will provide
specific market information that will permit the firm
to select the target market segment and optimally
position the offering within that segment . The market
strategy then involves:
Segmentation , Targeting, Positioning and Value
positioning to the target market
c. Marketing Mix Decisions:
It includes 4Ps of Marketing .
(Product, price, place & promotions)
d. Implementation and control strategy:
The marketing process does not end with
implementation-Continual monitoring and
adaptation is needed to fulfill customers need
consistently over long run.
Marketing Environment
Successful companies look beyond customer needs &
wants and are sensitive to marketing environmental
forces because a company operates within a generally
uncontrollable external environmental. It could be
extremely dangerous for a company to be rejoicing &
neglecting environmental forces when the company
business is prospering & growing,Customers are
satisfied and not much threats appears to exist from
the competetiors.Environmental forces can pose
serious threats to any business neglecting these
forces.
• The marketing environment sorrounds and impacts upon the
organization. There are three key perspectives on the marketing
environment, namely the 'macro-environment,' the 'micro-
environment' and the 'internal environment'.
The micro-environment:
This environment influences the organization directly. It includes
suppliers that deal directly or indirectly, consumers and
customers, and other local stakeholders. Micro tends to suggest
small, but this can be misleading. In this context, micro describes
the relationship between firms and the driving forces that control
this relationship. It is a more local relationship, and the firm may
exercise a degree of influence.
The macro-environment: This includes all factors
that can influence organization, but that are out of
their direct control. It is continuously changing, and
the company needs to be flexible to adapt. There may
be aggressive competition and rivalry in a market.The
marketing environment includes six major forces:
1.Demographic
2.Economic
3.Competetive
4.Sociocultural
5.Political-Legal
6.Technological
The internal environment:
All factors that are internal to the organization are known as the
'internal environment'. They are generally audited by applying
the 'Five Ms' which are Men, Money, Machinery, Materials
and Markets. The internal environment is as important for
managing change as the external. As marketers we call the
process of managing internal change
• Environmental Scanning :It refers to
systematically collecting information about
environmental forces that affect the performance of
not only the company but also all the players involved
in the process of conducting businesses in the macro
environment.
• ETOP Analysis
Environmental threats and
opportunity analysis)
ETOP Analysis of cycle manufacturing
Industry
Environmental Scanning Nature of Impact Impact of each on sector1
1.Economic + Ve Consumers rising disposable income.
2.Market
Neutral Few players and traditional
distribution system
3.Political Neutral The industry is too small for any
political attention
4.Social +Ve
Wide usage of the product/Physical
fitness usage
5.Technological
+Ve
Product innovation like battery
operated & light weight operation.
6.Suppliers Neutral Industrial concentration is Punjab &
Tamilnadu
Customer Perceived Value (CPV)
• It is the difference between the prospective
customer’s evaluation of all the benefits and
all the costs of an offering and perceived
alternatives.
• Benefits means—economic, Psychological &
functional benefits.
• Cost-----monetary, time, energy and psychie
costs.
Traditional Vs Modern Customer-oriented
organization
Traditional Organization chart:
Top Management ? Middle management
?Front line employee?Customers
Modern Customer oriented Organization:
Customers?Front-Line people?Middle
Management?Top Management
Customer life time value (CLV)
• The case for maximizing long term customer
profitability is captured in the concept of CLV.
CLV describes the net present value of the
stream of future profits expected over the
customer’s lifetime purchase.
E.g-Now suppose the company estimates
average customer lifetime value as follows:
1.Annual customer revenue : Rs 500
2.Average no of loyal years =20
3.Company profit margin=10%
CLV=(500*20)/10=1000
CLV calculations provide a formal quantitative
framework for planning customer investment & help
marketers to adopt long-term perspective. Marketers
who use CLV concepts must also careful to not forget
the importance of short-term brand building
marketing activities that will increase customer
loyality.
Data warehousing and Data Mining
• A customer database is an organized collection of
comprehensive information about individual customers or
prospects.
• These data’s are collected by the company’s contact center and
organized into a data warehouse where marketers can
capture,query and analyze it to draw inferences about
individual customers need and references.
• Data mining is the process of extracting useful information
about individuals,trends & segments from the mass of data.
Techniques-Cluster analysis,neural network,predictive
modelling
What is a brand:
A brand is a name, termed sign, symbol, design ,logo
or No or combination of them intended to identify the
goods or services of one seller or groups of sellers and
differentiate them from those of the competitors.
e.g– LG,555 detergent brand, P&G (FMCG player),
Nike Shoe [?], SBI logo, Dollar sign ($),Muscle Man
from Mr. Muscle, Mercedes Benz
So Product=Brand + Image
Brand Extension
• It occurs when a company recognizes the importance
of its brand equity & wants to extend it to others. It is
of 3 types:
1.Catagory related---New variants (yellow Nirma
detergent powder, package, )
2.Image related (Nirma bathing soap)
3.Un related(Nirma salt)
Brand equity
• It is the value that a brand generates to the
product.
• It emerges from the greater confidence that a
consumer places in a brand than they do in its
competitors.
• This confidence gets translated to consumers
loyality & their willingness to pay a premium
price for that brand.
umbrella brand
• An umbrella brand is a brand that covers
diverse kinds of products which are more or
less related.
Positioning
1. Positioning is all about how the product is
perceived in consumers mind.
2. It is the art of creating a distinctive image for
a product in the minds of consumers.
3. The basic approach of positioning is not to
create something new/diff but to manipulate
what is already up there in consumers mind to
find better connectivity with the target
audience.
• Positioning is the art of selecting out of a no of
USPS, the one that gives you max sales.
e.g—ATM (automated teller machine)
But what is ATM mean to me?
…. ?Any time money?.This is because it gives
instant cash.
Hence ATM—Product
?Any time money?---Positioning
• GluconD—Instant energy drink
• Big bazaar-better and cheaper
• Saffola sunflower oil---Good for heart
• Xylo—spacious vehicle
• Alto--Family car
• Nano—cheapest car
Some important facts and figures
• Median age of India's population is 25.
• 74% of India’s population is literate.
• 8% of population is above 60 yrs old.
• Male ,female ratio in our country is 52:48
• Colors channel from Viacom 18 is a JV between Rs
1500 Cr Network 18 & the $9.4 billion American
media player Viacom.
• Noodles market in India is Rs 1150 Cr.
• Some major Noodles player in our country are:
• Knorr soupy noodles---HUL
• Maggi Noodles --Nestle
• Sunfeast Yippe—ITC
• Horlicks foodles---GSK
• Top Ramen—Indo Nissin
• Hakka—Capital Foods
• Wai Wai-Chaudury Group (Nepal based)
• Amul is operating in India since 1955.(GCMMF
parent company)
• Times of India was started in India in 1838 as
Bombay Times.Today it sells around 3 million copies
everyday.
• Lijjat papad just started with a paltry sum of Rs 80 by
seven sisters ,Symbolizes women empowerment
India.Today it gives employment to 40,000 women
Pan India.
• Rasna soft drink is a part of Pioma industries.
• Pizza hut & KFC is a part of Yum International
, US.
• Big Bazaar is a part of future group. In India
there are around 210 Big Bazaars are there.
doc_828281082.ppt
According to AMA (American marketing Association) -Marketing is an organizational function and a set of processes for creating ,communicating and delivering value to customers and for managing customers relationship in a way that benefit the organization and its stakeholders
Introduction to marketing
Prepared BY: Prof. Hitesh Kumar Kar.
• According to AMA (American marketing Association) -
Marketing is an organizational function and a set of
processes for creating ,communicating and delivering
value to customers and for managing customers
relationship in a way that benefit the organization and
its stakeholders.
• According to Phillip Kotler--Marketing is a societal
process by which individuals and groups obtain what
they need and want through creating, offering and
exchanging products and services of value with others.
Marketing is a business process by which products are
matched with the business requirement.
A market can be viewed as any person,group or
organization with which an individual,group or
organization has an existing or potential exchange
relationship.Key customer markets include:
a.Consumer market
b.Business market
c.Global market
d.Non profit and Govt market
What can be marketed
• Goods
• Services
• Event
• Experience
• Persons
• Places(Blr-Silicon Valley, Kerala-Gods own country)
• Properties (Real properperty,Financial property)
• Organization
• Information
• Ideas
How business and marketing are changing
• Changing Technology
• Globalization
• Deregulation
• Privatization
• Customer empowerment
• Customization
• Retail transformation
Evolution of marketing concept
• Production concept (wide availability,less
expensive)
• Product concept (Quality products with
innovative features)
• Selling concept
• Marketing concepts
• Societal marketing concept
• Holistic marketing—(Internal marketing,IMC,
relationship marketing,socially responsive marketing)
• Needs,wants and Demand explanation
A need can be defined as a felt state of deprivation of
some basic satisfaction.
The specific satisfier that an individual looks for defines
the want.
Demand– want + willingness to pay + ability to pay
• Marketing Myopia-Marketing myopia occurs
when marketer focuses on the product rather
than the customer’s Requirement. (Given by-
Theodore Levitt)
• McCarthy classified marketing mix variables
in terms of 4Ps
roduct,price,place ,Promotion
Product Decision:
Brand name functionality
Styling,Quality,safety,packaging,warranty etc.
Price Decision
ricing is the only variable that can be altered very quickly.It includes dealer
price,retail price,discounts,credit
terms,allowance etc directly influences the
development of marketing strategy.
Product Decision:
Brand name functionality
Styling,Quality,safety,packaging,warranty etc.
Price Decision
ricing is the only variable that can be altered very quickly.It includes dealer
price,retail price,discounts,credit
terms,allowance etc directly influences the
development of marketing strategy.
• Distribution:It focus on making the product
available in adequate quantities at places
where customers are normally expected to
shop for them to satisfy their needs.
• Promotion
• Lauterborn’s 4Cs classification : Customer
benefit , Customer Convinces ,Customers
Cost,customer Communication
Marketing Mix
Product :: Design , Development , Variety , Quality, Features ,
Packaging ,Branding ,Services ,Warranties
Price : Cost , Competetive price , Discounts &
allowance , Credit terms & discounts & allowances
Place : Channel distribution,channel
coverage,inventory management,Distribution
logistics, Storage & ware housing
Promotion: Advertisement,sales promotion,direct
marketing,tele marketing,tele marketing,publicity,PR
• Service Marketing Mix-
a.Product
b.Price
c.Place
d.Promotion
e.People
f.Process
g.Physical evidence
• Services may be defined as an intangible activity
performed by persons or machines or both for the
purpose of creating value perceptions among
consumers.
• The following are the difference between goods and
services.
1.Services are intangible. Goods are tangible.
2.Services are heterogeneous .Goods are
homogeneous.
3.Services are produced in buyer-seller interactions.
Goods are produced in the factory.
4.Production,distribution & consumption takes place
simultaneously in the case of services. In the case of
goods, the three are separate and independent
functions.
5.Consumers are co-producers in services. Customers
do not generally participate in the production of
goods.
6.Services cannot be stored. Goods can be stored.
7.In the sale of services, transfer of ownership will not take
place where as in the case of goods it does not take
place.
So in brief services have basically six characteristics.
a.Intangibility,
b. Inseparability ,
c. Variability,
d. Perishability
e. Customer participation
f. No ownership transfer
Diff between Marketing and selling
Marketing
1.Marketing focuses on customers needs of want satisfying
products.
2. Emphasis is given on product planning & development to
match products with the market.
3.Customer is treated as a king . He is given supreme importance.
4.Marketing aims at profits through customer satisfaction.
5.The principle of caveat vendor (Let the seller be alert) is
followed.
6.Integrated approach of marketing is followed.
Selling
1.Selling focuses on seller’s need of converting his products into
cash.
2.Emphasis is placed on sale of products already produced.
3.Seller enjoys supreme importance.
4.Selling aims at profits through sales volume.
5.The principle of caveat emptor (Let the buyer be alert) is
followed.
6.Fragmented approach to selling is followed.
Functions of Marketing Manager
Key responsibilities of the marketing manager vary according to
the business but can include:
• Instilling a marketing led ethos throughout the business
• Researching and reporting on external opportunities
• Understanding current and potential customers
• Managing the customer journey (customer relationship
management)
• Developing the marketing strategy and plan
• Management of the marketing mix
• Managing agencies
• Measuring success
• Managing budgets
• Ensuring timely delivery
• Writing copy
• Approving images
• Developing guidelines
• Making customer focused decisions
Market research
• Marketing managers need to have a good knowledge of the
customer. This means building up an accurate picture using the
resources that are available. It is important to take personal
opinion out of as many decisions as possible – you probably
don't think in the same way as a typical customer. Information
can be gathered from questionnaires, focus groups, the
internet, interviews, buying habits and many more sources, but
it's important that the information is examined in a scientific
way using proper statistical methods. Gut feel can only take
your business so far.
Marketing Process
• Under this marketing concept, the firm must find a
way to discover unfulfilled customer needs and bring
to market products that satisfy those needs . The
process of doing so can be modeled in a sequence of
steps . The situation is analyzed to identify
opportunities, the strategy is formulated for a value
proposition , tactical decisions are made , the plan is
implemented and the results are monitored . The four
steps involved are as follows:
• Situation Analysis
• Marketing strategy
• Marketing Mix Strategy (Tactical decisions)
• Implementation &Control
a. Situation Analysis : A through analysis of the situation in
which the firm find itself serves as the basis for identifying the
opportunities to satisfy unfulfilled customer needs.In addition
to identifying customer needs, the firm must understand its
own capabilities and the environment in which it is
operating.The situation analysis thus can be viewed in terms
an analysis of the external environment and internal analysis of
the firm itself.The external environment can be viewed in the
form of macro environment and micro environment is related
to the situation of the firm.
If the situation analysis reveals gaps between what consumers
want and what currently is offered to them ,then there may be
opportunities to introduce products to better satisfy those
consumers . There are several frameworks that can be used to
add structure to the situation analysis. Some of the popular
frameworks are as follow:
1.5C analysis
(Company, Customer, Competitors , Collaborators and Climate)
2.Pestle Analysis
(Political, Economical, Social, Technological, Legal &
environmental)
3.Swot Analysis (Strength , Weakness , opportunity and threats)
b. MARKETING Strategy :Once the best
opportunity to satisfy unfulfilled customers need is
identified, a strategic plan for for pursuing the
opportunity can be developed. MR will provide
specific market information that will permit the firm
to select the target market segment and optimally
position the offering within that segment . The market
strategy then involves:
Segmentation , Targeting, Positioning and Value
positioning to the target market
c. Marketing Mix Decisions:
It includes 4Ps of Marketing .
(Product, price, place & promotions)
d. Implementation and control strategy:
The marketing process does not end with
implementation-Continual monitoring and
adaptation is needed to fulfill customers need
consistently over long run.
Marketing Environment
Successful companies look beyond customer needs &
wants and are sensitive to marketing environmental
forces because a company operates within a generally
uncontrollable external environmental. It could be
extremely dangerous for a company to be rejoicing &
neglecting environmental forces when the company
business is prospering & growing,Customers are
satisfied and not much threats appears to exist from
the competetiors.Environmental forces can pose
serious threats to any business neglecting these
forces.
• The marketing environment sorrounds and impacts upon the
organization. There are three key perspectives on the marketing
environment, namely the 'macro-environment,' the 'micro-
environment' and the 'internal environment'.
The micro-environment:
This environment influences the organization directly. It includes
suppliers that deal directly or indirectly, consumers and
customers, and other local stakeholders. Micro tends to suggest
small, but this can be misleading. In this context, micro describes
the relationship between firms and the driving forces that control
this relationship. It is a more local relationship, and the firm may
exercise a degree of influence.
The macro-environment: This includes all factors
that can influence organization, but that are out of
their direct control. It is continuously changing, and
the company needs to be flexible to adapt. There may
be aggressive competition and rivalry in a market.The
marketing environment includes six major forces:
1.Demographic
2.Economic
3.Competetive
4.Sociocultural
5.Political-Legal
6.Technological
The internal environment:
All factors that are internal to the organization are known as the
'internal environment'. They are generally audited by applying
the 'Five Ms' which are Men, Money, Machinery, Materials
and Markets. The internal environment is as important for
managing change as the external. As marketers we call the
process of managing internal change
• Environmental Scanning :It refers to
systematically collecting information about
environmental forces that affect the performance of
not only the company but also all the players involved
in the process of conducting businesses in the macro
environment.
• ETOP Analysis
Environmental threats and opportunity analysis)
ETOP Analysis of cycle manufacturing
Industry
Environmental Scanning Nature of Impact Impact of each on sector1
1.Economic + Ve Consumers rising disposable income.
2.Market
Neutral Few players and traditional
distribution system
3.Political Neutral The industry is too small for any
political attention
4.Social +Ve
Wide usage of the product/Physical
fitness usage
5.Technological
+Ve
Product innovation like battery
operated & light weight operation.
6.Suppliers Neutral Industrial concentration is Punjab &
Tamilnadu
Customer Perceived Value (CPV)
• It is the difference between the prospective
customer’s evaluation of all the benefits and
all the costs of an offering and perceived
alternatives.
• Benefits means—economic, Psychological &
functional benefits.
• Cost-----monetary, time, energy and psychie
costs.
Traditional Vs Modern Customer-oriented
organization
Traditional Organization chart:
Top Management ? Middle management
?Front line employee?Customers
Modern Customer oriented Organization:
Customers?Front-Line people?Middle
Management?Top Management
Customer life time value (CLV)
• The case for maximizing long term customer
profitability is captured in the concept of CLV.
CLV describes the net present value of the
stream of future profits expected over the
customer’s lifetime purchase.
E.g-Now suppose the company estimates
average customer lifetime value as follows:
1.Annual customer revenue : Rs 500
2.Average no of loyal years =20
3.Company profit margin=10%
CLV=(500*20)/10=1000
CLV calculations provide a formal quantitative
framework for planning customer investment & help
marketers to adopt long-term perspective. Marketers
who use CLV concepts must also careful to not forget
the importance of short-term brand building
marketing activities that will increase customer
loyality.
Data warehousing and Data Mining
• A customer database is an organized collection of
comprehensive information about individual customers or
prospects.
• These data’s are collected by the company’s contact center and
organized into a data warehouse where marketers can
capture,query and analyze it to draw inferences about
individual customers need and references.
• Data mining is the process of extracting useful information
about individuals,trends & segments from the mass of data.
Techniques-Cluster analysis,neural network,predictive
modelling
What is a brand:
A brand is a name, termed sign, symbol, design ,logo
or No or combination of them intended to identify the
goods or services of one seller or groups of sellers and
differentiate them from those of the competitors.
e.g– LG,555 detergent brand, P&G (FMCG player),
Nike Shoe [?], SBI logo, Dollar sign ($),Muscle Man
from Mr. Muscle, Mercedes Benz
So Product=Brand + Image
Brand Extension
• It occurs when a company recognizes the importance
of its brand equity & wants to extend it to others. It is
of 3 types:
1.Catagory related---New variants (yellow Nirma
detergent powder, package, )
2.Image related (Nirma bathing soap)
3.Un related(Nirma salt)
Brand equity
• It is the value that a brand generates to the
product.
• It emerges from the greater confidence that a
consumer places in a brand than they do in its
competitors.
• This confidence gets translated to consumers
loyality & their willingness to pay a premium
price for that brand.
umbrella brand
• An umbrella brand is a brand that covers
diverse kinds of products which are more or
less related.
Positioning
1. Positioning is all about how the product is
perceived in consumers mind.
2. It is the art of creating a distinctive image for
a product in the minds of consumers.
3. The basic approach of positioning is not to
create something new/diff but to manipulate
what is already up there in consumers mind to
find better connectivity with the target
audience.
• Positioning is the art of selecting out of a no of
USPS, the one that gives you max sales.
e.g—ATM (automated teller machine)
But what is ATM mean to me?
…. ?Any time money?.This is because it gives
instant cash.
Hence ATM—Product
?Any time money?---Positioning
• GluconD—Instant energy drink
• Big bazaar-better and cheaper
• Saffola sunflower oil---Good for heart
• Xylo—spacious vehicle
• Alto--Family car
• Nano—cheapest car
Some important facts and figures
• Median age of India's population is 25.
• 74% of India’s population is literate.
• 8% of population is above 60 yrs old.
• Male ,female ratio in our country is 52:48
• Colors channel from Viacom 18 is a JV between Rs
1500 Cr Network 18 & the $9.4 billion American
media player Viacom.
• Noodles market in India is Rs 1150 Cr.
• Some major Noodles player in our country are:
• Knorr soupy noodles---HUL
• Maggi Noodles --Nestle
• Sunfeast Yippe—ITC
• Horlicks foodles---GSK
• Top Ramen—Indo Nissin
• Hakka—Capital Foods
• Wai Wai-Chaudury Group (Nepal based)
• Amul is operating in India since 1955.(GCMMF
parent company)
• Times of India was started in India in 1838 as
Bombay Times.Today it sells around 3 million copies
everyday.
• Lijjat papad just started with a paltry sum of Rs 80 by
seven sisters ,Symbolizes women empowerment
India.Today it gives employment to 40,000 women
Pan India.
• Rasna soft drink is a part of Pioma industries.
• Pizza hut & KFC is a part of Yum International
, US.
• Big Bazaar is a part of future group. In India
there are around 210 Big Bazaars are there.
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