Marketing Concepts: Need, Want &Demand Marketing Mix (4ps,7Ps) BCG matrix ,Hansoff s Matrix Type of exchanges:B2B,B2C,C2C Porter

C Porter s 5 forces model Product Mix: Length, Width and depth DSTP ATL,BTL,TTL

Marketing Definitions: Societal Process by which individuals and groups obtain what they need through creating, offering and freely exchanging products & services of value with others Short & Sweet: Identifying and meeting needs profitably The right product, in the right place, at the right time, and at the right price Things that can be marketed: Goods, Services, Events, Experiences, Persons 1. Need: State of felt deprivation including physical, social and individual needs Ex: Food is the need and can be satisfied by bread and butter Maslow s Hierarchy of needs

A person starts at the bottom of the hierarchy (pyramid) and will initially seek to satisfy basic needs (e.g. food, shelter) - Once these physiological needs have been satisfied, they are no longer a motivator. the individual moves up to the next level - Safety needs at work could include physical safety (e.g. protective clothing) as well as protection against unemployment, loss of income through sickness etc) - Social needs recognise that most people want to belong to a group. These would include the need for love and belonging (e.g. working with colleague who support you at work, teamwork, communication) - Esteem needs are about being given recognition for a job well done. They reflect the fact that many people seek the esteem and respect of others. A promotion at work might achieve this - Self-actualisation is about how people think about themselves - this is often measured by the extent of success and/or challenge at work Maslow's model has great potential appeal in the business world. The message is clear - if management can find out which level each employee has reached, then they can decide on suitable rewards. 2.Wants: Needs become wants when they are directed to specific objects that might satisfy those needs. Ex: Food is need and Want would be I want Cake to satisfy my hunger

3.Demand: Want backed by buying power is called as demand Want + Buying Power= Demand Desire: Desire is the want with a strong urge to get what you want. Marketing Mix: 4 Ps: Product: The Product is the physical product or service offered to the consumer. In case of products it also refers to the services or conveniences that are a part of the offering. Product decisions include as functions, appearance, packaging, service and warranty etc. Price: Pricing decisions include the profit margins, Pricing of the competitor. It also includes aspects such as discounts , financing and leasing Place: Place include the distribution channels that act as the means of reaching to the target consumers. Place include market coverage, channel member selection, logistics and level of service. Promotion: Promotion are decisions related to communicating and selling to potential consumers. Since these costs can be large in proportion to the product price, a break even analysis should be performed when making promotion decisions. Difference between 4ps and 4Cs Consumer wants and needs (vs. Products) You can't develop products and then try to sell them to a mass market. You have to study consumer wants and needs and then attract consumers one by one with something each one wants. Author of the movie Field of Dreams, J.P. Cancilla may have exclusive rights to the phrase "build it and they will come". In most cases, you have to find out what people want and then "build" it for them, their way. Cost to satisfy (vs. Price) You have to realize that price - measured in dollars - is one part of the cost to satisfy. If you sell hamburgers, for example, you have to consider the cost of driving to your restaurant, the cost of conscience of eating meat, etc. One of the most difficult places to be in the business world is the retailer selling at the lowest price. If you rely strictly on price to compete you are vulnerable to competition - in the long term. Convenience to buy (vs. Place) You must think of convenience to buy instead of place. You have to know how

each subset of the market prefers to buy - on the Internet, from a catalogue, on the phone, using credit cards, etc. Lands End clothing, Amazon Books and Dell Computers are just a few businesses who do very well over the Internet. Communication (vs. Promotion) You have to consider the communication instead of promotion. Promotion is manipulative (ouch!) - its from the seller. Communication requires a give and take between the buyer and seller (that's nicer). Be creative and you can make any advertising "interactive". Use phone numbers, your web site address, etc. to help here. And listen to your customers when they are "with" you. BCG Matrix Understanding the Model Market Share and Market Growth To understand the Boston Matrix, you need to understand how market share and market growth interrelate. Market share is the percentage of the total market that is being serviced by your company, measured either in revenue terms or unit volume terms. The higher your market share, the higher the proportion of the market you control. The Boston Matrix assumes that if you enjoy a high market share you will be making money. (This assumption is based on the idea that you will have been in the market long enough to have learned how to be profitable, and will be enjoying scale economies that give you an advantage). The question it asks is, "Should you be investing additional resources into a particular product line just because it is making you money?" The answer is, "not necessarily." This is where market growth comes into play. Market growth is used as a measure of a market's attractiveness. Markets experiencing high growth are ones where the total market is expanding, meaning that its relatively easy for businesses to grow their profits, even if their market share remains stable. By contrast, competition in low growth markets is often bitter, and while you might have high market share now, it may be hard to retain that market share without aggressive discounting. This makes low growth markets less attractive. Understanding the Matrix The Boston Matrix categorizes opportunities into four groups, shown on axes of Market Growth and Market Share:

These groups are explained below: Dogs: Low Market Share / Low Market Growth In these areas, your market presence is weak, so it's going to take a lot of hard work to get noticed. You won't enjoy the scale economies of the larger players, so it's going to be difficult to make a profit. And because market growth is low, it's going to take a lot of hard work to improve the situation. Cash Cows: High Market Share / Low Market Growth Here, you're well-established, so it's easier to get attention and exploit new opportunities. However it's only worth expending a certain amount of effort, because the market isn't growing, and your opportunities are limited. Stars: High Market Share / High Market Growth Here you're well-established, and growth is exciting! There should be some strong opportunities here, and you should work hard to realize them. Question Marks (Problem Child): Low Market Share / High Market Growth These are the opportunities no one knows what to do with. They aren't generating much revenue right now because you don't have a large market share. But, they are in high growth markets so the potential to make money is there. Question Marks might become Stars and eventual Cash Cows, but they could just as easily absorb effort with little return. These opportunities need serious thought as to whether increased investment is warranted.

Ansoff's product / market matrix

Introduction The Ansoff Growth matrix is a tool that helps businesses decide their product and market growth strategy.

Ansoffs product/market growth matrix suggests that a business attempts to grow depend on whether it markets new or existing products in new or existing markets.

The output from the Ansoff product/market matrix is a series of suggested growth strategies that set the direction for the business strategy. These are described below: Market penetration Market penetration is the name given to a growth strategy where the business focuses on selling existing products into existing markets. Market penetration seeks to achieve four main objectives: Maintain or increase the market share of current products this can be achieved by a combination of competitive pricing strategies, advertising, sales promotion and perhaps more resources dedicated to personal selling Secure dominance of growth markets

 Restructure a mature market by driving out competitors; this would require a much more aggressive promotional campaign, supported by a pricing strategy designed to make the market unattractive for competitors Increase usage by existing customers for example by introducing loyalty schemes A market penetration marketing strategy is very much about business as usual. The business is focusing on markets and products it knows well. It is likely to have good information on competitors and on customer needs. It is unlikely, therefore, that this strategy will require much investment in new market research. Market development Market development is the name given to a growth strategy where the business seeks to sell its existing products into new markets. There are many possible ways of approaching this strategy, including: New geographical markets; for example exporting the product to a new country New product dimensions or packaging: for example New distribution channels Different pricing policies to attract different customers or create new market segments Product development Product development is the name given to a growth strategy where a business aims to introduce new products into existing markets. This strategy may require the development of new competencies and requires the business to develop modified products which can appeal to existing markets. Diversification Diversification is the name given to the growth strategy where a business markets new products in new markets. This is an inherently more risk strategy because the business is moving into markets in which it has little or no experience. For a business to adopt a diversification strategy, therefore, it must have a clear idea about what it expects to gain from the strategy and an honest assessment of the risks. Eg. I pod, hand sanitizer

ATL BTL TTL:

ATL: ATL is a type of advertising through media such as television, cinema, radio, print, and Out-of-home to promote brands or convey a specific offer. BTL: BTL sales promotion is an immediate or delayed incentive to purchase, expressed in cash or in kind, and having short duration. BTL is a common technique used for "touch and feel" products. Main concern is reaching consumers in a way that makes a real impact TTL:Integrated Communication Approach. TTL approach, a mix of ATL and BTL are used to integrate a marketer's efforts and optimize returns from these separate investments. Porter's 5Forces Model:

Threat of New Entrants New entrants to an industry can raise the level of competition, thereby reducing its attractiveness. The threat of new entrants largely depends on the barriers to entry. High entry barriers exist in some industries (e.g. shipbuilding) whereas other industries are very easy to enter (e.g. estate agency, restaurants). Key barriers to entry include Economies of scale Capital / investment requirements Customer switching costs Access to industry distribution channels The likelihood of retaliation from existing industry players.

Threat of Substitutes The presence of substitute products can lower industry attractiveness and profitability because they limit price levels. The threat of substitute products depends on:

- Buyers' willingness to substitute - The relative price and performance of substitutes - The costs of switching to substitutes Bargaining Power of Suppliers Suppliers are the businesses that supply materials & other products into the industry. The cost of items bought from suppliers (e.g. raw materials, components) can have a significant impact on a company's profitability. If suppliers have high bargaining power over a company, then in theory the company's industry is less attractive. The bargaining power of suppliers will be high when: - There are many buyers and few dominant suppliers - There are undifferentiated, highly valued products - Suppliers threaten to integrate forward into the industry (e.g. brand manufacturers threatening to set up their own retail outlets) - Buyers do not threaten to integrate backwards into supply - The industry is not a key customer group to the suppliers Bargaining Power of Buyers Buyers are the people / organisations who create demand in an industry The bargaining power of buyers is greater when There are few dominant buyers and many sellers in the industry Products are standardised Buyers threaten to integrate backward into the industry Suppliers do not threaten to integrate forward into the buyer's industry The industry is not a key supplying group for buyers

Intensity of Rivalry The intensity of rivalry between competitors in an industry will depend on: - The structure of competition - for example, rivalry is more intense where there are many small or equally sized competitors; rivalry is less when an industry has a clear market leader - The structure of industry costs - for example, industries with high fixed costs encourage competitors to fill unused capacity by price cutting - Degree of differentiation - industries where products are commodities (e.g. steel, coal) have greater rivalry; industries where competitors can differentiate their products have less rivalry - Switching costs - rivalry is reduced where buyers have high switching costs i.e. there is a significant cost associated with the decision to buy a product from an alternative supplier

- Strategic objectives - when competitors are pursuing aggressive growth strategies, rivalry is more intense. Where competitors are "milking" profits in a mature industry, the degree of rivalry is less - Exit barriers - when barriers to leaving an industry are high (e.g. the cost of closing down factories) - then competitors tend to exhibit greater rivalry. DSTP Differentiation: The act of designing a set of meaningful differences to distinguish the company's offering from competitor's offerings. Common ways of differentiating: Product Differentiation Service Differentiation Channel Differentiation Image Differentiation Segmentation: The division of a market into different homogeneous groups of consumers is known as market segmentation. Basis for Segmentation: Geographic segmentation is based on regional variables such as region, climate, population density, and population growth rate. Demographic segmentation is based on variables such as age, gender, ethnicity, education, occupation, income, and family status. Psychographic segmentation is based on variables such as values, attitudes, and lifestyle. Behavioral segmentation is based on variables such as usage rate and patterns, price sensitivity, brand loyalty, and benefits sought. Targeting After the market has been separated into its segments, the marketer will select a segment or series of segments and 'target' it/them. Types of Targeting Undifferentiated Marketing Company targets the entire market with one product Coca Colas original marketing strategy was based on this form. Concentrated Marketing Company targets the only one segment Rolls Royce cars aim its vehicles at the premium segment

 Differentiated Marketing Company targets different segments with different products/brands/service Airlines companies offering business and economy class tickets Positioning The process by which marketers try to create an image or identity in the minds of their target market for its product, brand, or organization Statement that distinctly defines the product in its market and against its competition over time Occupying a distinctive place in the mind of the consumer Examples Coca Cola Open Happiness Thums Up Taste the thunder Sprite First drink, then think Mountain Dew Darr ke aage jeet hai Product Mix: Length, Width and Depth Width- Different product segments within a company Length- Different brands in one particular segment Depth- Different variants of a single brand e.g. : Procter & Gamble Width Hair Care, Oral Care, Health Care, Batteries, Skin care, Hair Color, Car Perfumes, Blades & Razors, Personal Care, Laundry, Feminine & Baby Care Length Hair care- H&S, Pantene, Rejoice Depth H&S- Anti Hair fall, Smooth & Silky, Nourished Shine, Cool Menthol Types of Exchanges: B2B: It is the practice of individuals, or organizations, including commercial businesses, governments and institutions, facilitating the sale of their products or services to other companies or organizations that in turn resell them, use

them as components in products or services they offer, or use them to support their operations. B2C: B2C is an abbreviated term for business to consumer marketing. Business to consumer marketing is when a business markets products to a consumer market. A consumer is a buyer of products that are not business related. B2C products include goods and services such as food, clothes, cars, houses, phone services, credit repair services, etc.

Large target market Single step buying process, shorter sales cycle Brand identity created through repetition and imagery Merchandising and point of purchase activities Emotional buying decision based on status, desire, or price

C2C: Customer to Customer (C2C) markets are innovative ways to allow customers to interact with each other. While traditional markets require business to customer relationships, in which a customer goes to the business in order to purchase a product or service. In customer to customer markets the business facilitates an environment where customers can sell these goods and or services to each other