Marketing Crasher

An Unfortunate Need

Purpose of this crasher• Getting you placed• Additionally this is a primer. There are a lot of gaps left by

MM1 (for the purpose of summers, otherwise they were unquestionably perfect classes I am sure) which I am hoping this would fill. You don’t need jargon. You need a way to think

• All this may seem superficial but we will try to explain with examples. This is purely from summers point of view

• It also gives you a method of preparation. There is enough time for you to be prepared but not enough for you to slack off.

• Any questions you have will be answered. Perhaps not correctly. No guarantee

Need

• The gap between a state a person is in and their desired state.

• “I want to relax”

Want

• When a need is directed at a specific object

• “I could go for a sutta(Ultra Milds©) right about now”

Demand

• A want backed by the ability to pay for it

• “I can go get one right now, account pe dal denge”

Why is this globe important?

• It is the basis of all marketing thought.• How do you turn a need into demand is

basically asking how do you make money using someone’s humanity(needs and desires)

• Sounds horribly opportunistic? Deal with it. You’re an MBA this is your life now.

• All logic of STP 4P flows from this

For Example

• Sex is one of the most basic needs.• Though the AXE ads are morally questionable

they are marketing genius• The ads say that we satisfy your sexual urge by

making you irresistible.• And it worked-They turned a NEED into

DEMAND

https://www.youtube.com/watch?v=pnmjwr2P6Es

Another example

• “I want society to know how beautiful I am”-need

• “I want my friends to see this awesome pic of me”-Want

Demand: Facebook, Instagram, Camera phones, social media enabled camera phones.

GTM: Go to Marketing Strategy

• Can be asked in interviews and GDs.• This basically means that you should do an STP

4P analysis.• The STP 4P analysis should be treated like a

mental checklist. It is used to make sure you don’t leave out anything in your strategy

• You should have this internalised. You will be F*****g tired to think during the interviews/gds.

• There are two ways to do it.– With a product in mind(Selling Concept)– Without a specific product in mind(Marketing Concept)

• Ideally you should finish ST and then decide Your positioning(product benefits) but this may not always be the case in your GDs and Interviews.

• First case: Decide your STP based on which segment will be the most receptive

• Second Case: Which segment will be your most profitable and what is their NEED

GTM

Segmentation: The first step

• You are basically applying this to the whole population• You’re NOT deciding the target group in this part of your

analysis.• Segmentation is clustering people by various needs• There are various methods of segmentation.• When you use the different types of segmentation you

need to explain why you used it in the interview.• The reason usually is: a particular type of segmentation

helps my identify customers’ differences in need/behaviour

Types of Segmentation• Geographic Segmentation-This is not the PLACE in 4p. You

just decide (north india/South india or rural urban etc)

• Demographic Segmentation– Age– Gender– Income– SEC

• Behavioral Segmentation• Psychographic Segmentation

Segmentation: When to use behavioural and when to use psychographic

• The difference between behavioural and psychographic segmentation can be illustrated thus.

• Consider people commuting in Mumbai• There are people who travel by train and people

who travel by car• The same people can be divided into people who

want to travel by car and want to travel by train• There may be overlap of these people since they

are different kinds of segmentation

• A company selling tea may do a behavioural segmentation. They will sell their products along the stations as commuters of trains will be their target segment. What the people desire to travel by is irrelevant for the company

• But a company which makes a ride sharing app will need to look at what they want to travel by.

Segmentation: When to use behavioural and when to use psychographic

Segmentation: Example of reasoning

• Say you get beverage as the product to do GTM

• The easiest segmentation would be north south segmentation(geographic)

• Very clearly there is a preference for tea in the north and preference for coffee in the south.

• Your segmentation should give you differences to work with.

HUL Segmentation

• HUL clearly segmented its shampoo market by income

• It has three brands in clear well defined price points– Clinic-Lower Income Groups– Sunsilk-Middle Income Groups– Tresemme-Higher Income Group

SEC

• It is a shorthand for describing the different kinds of people in india

• The new system is entirely based on what these people possess. A basket of goods.

• It can be made easy to remember if you find someone in your life belonging to each classification

Targeting• This is quite simple really.• Target segment should be large enough or willing to pay large

amounts or both• The company should have the capacity to serve the segment• Eg: L’oreal doesn’t go into mass brands because the

money/numbers is in rural india and they don’t have the distribution capacity to serve there

• Again two cases:– If the product is given to you choose the best matching target

segment based on the needs and benefits of the product– If you can choose the product and its features choose the most

profitable segment and tailor the product to match its needs

Positioning

• This will define your product and its features.• You need to ensure your products’ POP, POD• Basically its how you want the consumer to

perceive your product• Example: Fogg’s positioning is “no gas” giving

the benefit “more sprays per bottle”• Axe Signature is trying out the no gas part now• Positioning basically dictates your promotion

To (target segment and need) our (brand) is (concept) that (point-of-difference).

To young, active soft-drink consumers who have little time for sleep, Mountain Dew is the soft drink that gives you more energy than any other brand because it has the highest level of caffeine.

Positioning Statement

Example:

How does STP connect to the globe at the beginning.

• What does the consumer need?(Positioning)• Who needs it?(Targeting-Segmentation)

4P

Intro

• 4P is product place promotion and price.• The STP framework is an analogue to planning

whereas this one is closer to execution.• How do you actually get the product to the right

consumer?(price/place-demand)• How do you get consumers to want the product?

(promotions-want)• How much will they pay for it(get price wrong

and your demand goes down)

Product

• What kind of SKU will be best suited for each market?• For example: When are sachets sold as against shampoo

bottles?• In which state are the biggest bottles of shampoos sold?• Basically you decide the kind of delivery of the product. • Example tea: Tea bags, powder, leaf etc• The evolution of soft drink: From glass bottles, to plastic

bottles to soda fountains to cans• Shoe Sizes

Promotions

• You know the various kinds of promotions• Just make sure that it matches your

positioning and reaches your target segment• Hoardings, Posters, Digital media, TVC,

Innovative promotions, In-Store Demos, Radio, Print Media

• You wouldn’t use facebook to promote Vicco Vajradhanthi Tooth Powder would you?

Pricing• Premium Pricing.E.g.: Bourneville• Penetration Pricing. Eg: Sunfeast chocolate chip biscuits• Economy Pricing. E.g.: Private labels by retailers like Big Bazaar • Price Skimming.E.g.: Most hi-tech products such as Tablets by

Apple• Captive Product Pricing Eg Razors• Product Bundle Pricing• Loss Leader• Geographical Pricing

Place

• The place is basically the channel/type of shop you sell it in

• You decide this with the customer segment in mind.

• Where would they buy? Would it be easy to serve/distribute there?

• The next few slides are about sales. They basically explain where you will be able to sell

Sales & Distribution Challenges In India

• Road network in India.– Road density (Km/ 000 people) India: 2.75 World 6.7– % Rural Population within 2 Kms of a motorable road: 60 – National Highways as % to Total roads : 2%– % Traffic in National highways : 40 %– % of National Highways which are 4 laned : 14%– % of State highways which are 4 laned : 1%

• Supply Chain Story in India

Sales Hierarchy

Factory 1Factory 2 Factory 3

Central Warehouse

C& FA 1

C &FA2

C & FA3

Distributor

RetailerWholesaler

Buyer / Consumer

Flows:1. Product /

Inventory2. Money3. Promotion4. Service5. Information6. Title7. Liability

Distribution Layers

RoI is a Function of:• Margin• Frequency / Sales Cycle• Volume

Place & RoI

ChannelsModern Trade

General Store Boutique Hyper market Retail Chains

General TradeStand Alone

Super Market Grocer Chemist Kirana

Outlet Classification

Over The Counter OTC

Look Touch & Feel

Chemist Kirana General Stores

High Street Boutique Retail Chains- Spencers, More, Reliance Fresh, Trends & Croma

Channel Members• Carry & Forward Agent:

– Title of goods stays with the Company & involves in logistics and warehousing• Distributors:

– Holds the title of the goods and supplies to wholesale and large retailers– Company has complete control of flow of goods at this point– Distributor carry most of the portfolio of the Company

• Wholesale– Mostly prefers to stock PULL based products, trade advocacy is considerably

less– Margins is less and Sales Cycle / Frequency and Volume constitutes for RoI

• Retail:– End point where Off take of products happens, to build a PUSH based product

this is the apt point – Trade Advocacy is High depending on Margin

Retail - Snapshot• 7.88 million outlets catering to A population of 1,210 million.

This data is for food & groceries – traditional.• Or, 154 persons covered by an outlet.• 80% of these retail outlets in india have a turnover of less than

Rs. 10,000 per month.• Retail in India accounts for 95% of food & groceries sold in

India.

Variables to consider for Distribution Network

• Consumer and Geographic Dispersion– Larger the number and greater the dispersion, more is the necessity to use

intermediaries.– The channel may, thus, have many layers.– Transportation & logistics need to be well organised.

• Frequency of Purchase– The higher the frequency of purchase, more is the transport intensity in the “last

mile”.

• Purchased on impulse.– Importance of availability.

• Level of involvement – Function of cost of the product.

• Identify the Basket of Goods

Contd....

• Perishablity– Speed of Delivery

• Value to Volume Ratio– Transportation, Shelf Space

Typical Career in Sales & Marketing• Sales:Distributor ManagementBTL & ActivationAchieving Sales TargetsStarting Point - Area Sales Manager• Marketing:Marketing Budgets and AllocationMediaAdvertising & Creative BriefsAssistant Brand Manager

Typical Interview/GD Knowledge

• What do the brand managers do• What do the ASMs do.• Sales Vs Marketing• Preparing brand decks• How to increase profits? 3 ways• Ad Analysis• How to approach GD

Whats your favourite Brand and why?

Sample GTM

• Pick any fmcg product

Ad Analysis

• Those in the audience who have discussed this ad with me please let the others think.

• https://www.youtube.com/watch?v=L6JAPKJTl2k• Try to work out the STP 4P the managers would

have followed• Compare it with this ad• https://www.youtube.com/watch?v=Xf_i_WZZyes

Pick any ad

Social Media Marketing

Exposure

Customer

Endorser

Evangelist

Social media marketing warning• People are not there to sell/buy your product• Doesn’t mean that you can’t ;)

Roadmap of Digital marketing• Web design & analytics• Outbound marketing• Inbound marketing• Content marketing• Social media marketing

You cannot leave out one trying to compensate with another…

Small biz – trax farms •Social media page – brings credibility •Yelp- reviewing site- your friends reviewing the company

Big Biz – Old spice•Change in personality of the brand (From old guys products)•Live social media campaign ->+107% sales +20k comments

Brand impact – innocent smoothies•Tell your story-> spreading the story -> Prove your story•Smoothies covered with hat knit by charity organization•Gave a positive personality to the brand •Post pictures of caps on social media – free advertising

Engagement impact - Birchbox •Find – reach – engage•Customized high end samples of beauty products (waiting line-exclusivity)•Blog reviews – social media posts –review videos – Pinterest conversations about the products •Sneak peak videos of products unlocked after certain number of comments!

Conversion impact – Smarty had a party•Exposure + Credibility = Conversions•Socialized conversion points , direct link access & content integration•Party supplier with great blog following with posts about product ideas•Conversion links with the posts and discounts coupons through social media

Impacts a social media campaign can make

Social media cycleDiscover your customers• Blog search• Twitter search• Site analytics• Listening toolsObserve the conversation• Thoughts- Tweets ,blogs, facebook• Interests – Retweets, likes,vid embeds• Brand actions – subscribe, registrations,

purchasesSparking the conversation- why they do?• Knowledge – looking for advice• Ego – first to find something• Rewards – gaining tangible/intangible

benefits• Passion- interest in a topic/brand

Raging content – social media audientce• Info graphics• How to guides• Twitter chat hosting

Blogs & articles

Social reviews

Search networks

Social networks

Social sharing

Micro blogging

What channel is right for biz?

From top to bottom• Context decreases- content

becomes generic• Competition for attention increases

• Brands fighting for customer’s attention

Designing a social media campaign

Goals Micro goals Tactics Channels

Business Goal• Bring students to yoga classesMicro goals for this goal1) Drive new referral traffic 2)Bring back past students 3)Reach out to new customers

Drive new referral traffic • Facebook sponsored

stories• Social sharing details• Social reviews• Blog Coverage• Pins & Repins

Bring back past students • Test groupon• Pitch local bloggers• Social ads• Guest blogging

Reach out to new customers • Social media driven

offers• Check in deals• Email newsletter• Social re marketing• Send to friend offers

Awesome screw up !• Thomas hawk a photography blogger • Abused by the priceritephoto• Blogged with 24 updates till now• People added their own experience• #no1 story of the year in Digg• Shared to slashdot boing boing and

metafilter blogs topped there too !• New york times coverage• All powered by comments and shares• Takeaway: You never know who you

are dealing with !

Now the opposite…• Lady who lost her mom dealt with by

awesome zappos customer serveice• She blogs, more comments & more

stories.• 1000s of mentiones and mainstream

press attention• Takeaway: if you did something good it

will show up on social media but make sure everyone sees it.