MARKETING

Prof. Jogendra NayakDepartment of Management Studies

IIT Roorkee

CHANGES IN LIFESTYLE

Earlier • Tap water• Newspaper• Sports• Telephone• Typewriter• Ticket booking• Kirana stores

Present • Mineral water• Virtual paper• Video games• Mobile• Computer• Online booking• Shopping centres

Marketing

• Definition• Needs, wants and demands• Markets, market place, virtual and meta

markets• Company orientations(production, product,

selling, marketing)

What is marketed?

• Goods• Services• Events• Experiences• Persons• Places• Properties• Organizations• Information• Ideas

Challenges in Indian market

• High volatility in market• Diversity • Disparity in income• Accessibility• Concern for ecology• Role of social channels• Fast change in lifestyle (DINK’s)

The customer

• Customer life cycle– Prospect– First time buyer– Repeat buyer– Core buyer– defector

Barriers to entry and exit

• Government policy• Costs• Presence of strong brands• Technology• Customer preferences

Competition

• Innovative solutions to existing problems• Price war• Switching channels of distribution• Service based competition• Experience based competition

Market opportunity

• Demand analysis• Segment analysis• Industry analysis• Competitor analysis

Marketing planning

• PIMS approach• Portfolio methods – BCG Approach– GE Approach

Segmentation

• Definition• Need for segmentation• Mass marketing• Niche marketing• Local marketing• Individual marketing

Segmenting consumer markets

• Geographic • Demographic• Psychographic• Behavioural• VALS Framework

Segmenting business markets

• Demographic• Operating variables• Purchasing approaches• Situational factors• Personal characteristics

Positioning

Product strategy

• Levels of a product – Core– Basic– Expected– Augmented– potential

• Product classifications– Durability and tangibility(durable, nondurable, services)– Consumer goods classification(convenience, shopping, specialty,

unsought)– Industrial goods classification(materials and parts, capital items,

supplies and business services)

Product mix

• Product mix – Length– Width– Depth– Consistency

• Line stretching• Line filling• Line pruning• Co branding

Setting the price

• Setting the pricing objective• Determining demand• Estimating costs• Analyzing competitor’s costs, prices and offers• Selecting a pricing method• Selecting the final price

Pricing objectives

• Survival• Maximize profit• Maximize market share• Maximum market skimming• Product quality leadership

Pricing

• Product line pricing• Optional feature pricing• Captive product pricing• Two part pricing• By-product pricing• Product bundling pricing

Pricing method

• Markup pricing• Target return pricing• Perceived value pricing• Value pricing• Going rate pricing

Marketing channels

• Role of channels• Levels of channel• Channel design decisions – Lot size– Waiting and delivery time– Variety– Service backup

• Channel conflict