Strategic Marketing

1. P r e s e n t e d B y
S o n a k s h i N a r a n g

2. Contents
 So what is marketing?
 What can be marketed?
 Segmentation, Targeting & Positioning
 Branding
 The Marketing Mix
 Product Management
 Marketing Communications
 Expanding Marketing’s Traditional Boundaries

3. So what is marketing?
 Marketing actually covers everything from company culture and
positioning, through market research , new business/product development,
adverting and promotion PR(public/Press relation), and arguably all of the
sales and customer service functions as well;
 Systematic attempt to fulfill human desires by producing good and
services that people will buy.
 Where the cutting edge of human nature meets the versatility of
technology
 Market oriented companies help us discover desires we never knew we
had, and ways of fulfilling them we never imagined could be invented.

4. Definition
 American Marketing Association the process of planning and executing
the conception, pricing , promotion, and distribution of idea, goods, and
services to create exchanges that satisfy individual and organizational
objectives.
 Philip Kotler : Marketing is a social process by which individuals and
groups obtain what they need and want through creating and exchanging
product and value with other.
 Chartered Institute of Marketing : Marketing is the management process
that identifies anticipates and satisfies customer requirements profitably.

5. Three Level of Marketing
 The Top Level Marketing
 Marketing as a business philosophy
 In essence it’s the process by which a company decides what it will sell,
to whom, when & how and then does it!

6.  The second Level of Marketing
 Marketing as strategy
 It talks about the environment the business is operating in; customers,
competitors, laws, regulations etc. and planning market strategy to
make a successful business.
 This layer is about:
 SEGMENTING the market
 Deciding which customer to TARGET
 Deciding what messages you want the targets to associate with you:
POSITIONING

7.  This level also talks about Branding Concept
 It is not just about logos and names
 Brands are about image – or more correctly its perception, branding is
link b/w the attributes customers associate with a brand and how the
brand owner wants the customer to perceive the brand: the brand identity.
 Level two of Marketing can thus be summarized as STP + Branding.

8.  The third level marketing is about
 day to day operational running of marketing
 Encompasses the control of the marketing mix and the processes within a business
that help create and deliver that company’s products and services to the customer.
 This level spans all aspects of a business and across all customer contact points
including:
 A company’s website
 How they answer the phones
 Their marketing & PR campaigns
 Their sales process
 How customer contact staff present themselves
 How a business delivers its services
 How business “managers” its clients
 How a business solicits feedback from its clients

9. Review:
 Marketing involves an ongoing process. The environment is “dynamic”
 Market tends to change – what customer want today is not necessarily
what they want tomorrow
 This process involves both planning and implementing the plan.
 A simple definition would be: the right product, in the right place, at the
right time, at the right price.

10. The Value of Marketing
 Fundamental idea of marketing is organizational survival through meeting the
needs and wants of customers.
 Marketing Concept – is a philosophy and business orientation about matching
a company’s capabilities with customers’ wants.
 This matching process – marketing environment
 It involves
 Strategic
 And tactical marketing within the organization's structure.

11.  Needs:
 An organization that adopts the marketing concept accepts the needs of
potential customers as the basis for its operations and thus its success
depends on satisfying those customer needs.
 Basic requirement that an individual has to satisfy to continue to exist.

12.  Maslow's Hierarchy of need is the best way
to understands the needs of the customers.
 Helps understanding human behavior
through needs motivation.
 These needs are created from human biology
and the nature of social relationships, it is
just that human society and
 Marketers have evolved many different ways
to satisfy these basic needs.
Source: Maslow's Hierarchy (1943)

13.  Utility:
 Is a measure of relative satisfaction from or desirability of consumption of
various goods and services.
 In other words it is the want satisfying power of the goods and services.
 Types of utilities:
 Form Utility: Product planning and developing activity creates form utility.
 Time Utility: making the product available when consumer wants to
purchase it.
 Place utility: making the product available in a location convenient for
customers to buy from.
 Ownership Utility: refers to the orderly transfer of legal title to the product
or service from the seller to the buyer via a sales transaction.

14.  Exchange Process:
 Marketing involves two or more parties trading something of value with
each other. E.g. while going to restaurant you exchange money for food
and services
 Steps that involve in exchange process:
 There must be two parties each with unsatisfied needs or wants.
 Each must have something to offer.
 Parties must communicate.
 This process exists only when two or more parties benefit from trading
something of value.

15.  Concept of demand:
 It involves a group of Potential customers with shared need that can be
satisfied through an exchange relationship to mutual satisfaction of the
potential customers and suppliers.
 In other words it is the want for a specific product / service supported by
the ability and willingness to pay for it.
 STP- Segmenting the market on the basis of demand.

16. The Marketing concept
 There are 4 era in the
development of business
which have sequentially led
to the development of the
marketing Concept.
 The 4 era’s of business
philosophy.

17. Adopting The Marketing
Orientation
 Sales Orientation: pays little attention to the customers needs and wants.
 Production Orientation pays attention to bulk production only i.e.
maximize profitability by exploiting economies of scale.
 Product Orientation: obsess with its own product

18. What Can Be Marketed?
 Right from a pure service to a pure commodity everything can be
marketed.
 These services and commodities are differentiated on the bases of :
 Tangibility
 Perishability
 Separability
 Standardization

19. TPO : Total Product Offering
 This is the total package that makes up and surrounds the product
including all supporting features such as branding, servicing, and
warranties, indeed the TPO includes all elements of the marketing mix
so that marketers must design a complete, co-ordinated, cohesive and
congruent package.

20.  Core Benefit Product:
 These product
 do not create a new need in themselves.
 will satisfy a need in its basic sense.
 E.g. Communication: E-Mail, SMS, Messaging app replaced fax, letters ,
telegrams etc.
 Basic Product:
 Is the Product that stripped down to its essentials and is often referred to as the
FAB.
 Features- quality
 Attributes- features presented in such a manner that it adds value
 and Benefits- favorable results customers expect to obtain by using a product.

21.  Augmented Product:
 Contains supporting features.
 Aim to provide ways to enhance the offering and can be used to counter
objections or resolve doubts in the customer’s mind.
 Perceived product
 It is the way customer looks ant the product.
 Marketers need to make efforts so that the customers perceives the product
as it is intended- Positioning.

22. Types of Marketing
 B2C- marketing to consumers
 B2B- marketing to business

23. Segmenting, Targeting, & Positioning

24. Segmenting
 Is a process of breaking down the total market for a product of service into
distinct sub segment where each segment may conceivably represent a separate
target market to be reached with marketing mix.
 Segmentation helps to know
 customers insights.
 Needs of actual and potential customers
 Bases of segmentation:
 Geographic Variables: Location, east west north south
 Demographic variables: statistics about age, income, gender, family size etc.
 Psychographic variables: lifestyle, attitude, values, personality.
 Behavior: brand loyalty, User type i.e. heavy user or light user.

25. Targeting
 Target marketing is identification of market segments that are identified
as being the most likely purchasers of a company’s products.
 Targeting of the segment depends on various factors:
 Level of competition in existing market
 How large is the segment and how can we expect it grow?
 Do we have strength as a company to appeal to the targeted group of
customers.
 Are we actually able to communicate with the selected segment.

26. Positioning
 It refers to the way in which an organization sets itself apart in the
market and how its products and services are perceived by the target
markets as a whole.

27. Positioning and perception
 Positioning concept has two dimensions
 What the organization wishes to achieve
 What consumers actually believe about a particular product or
service.

28. Ries and Trout (1981) : Positioning
Concept
 They believed that positioning can be achieved within 3 major concepts:

29. 4 C’s positioning frame work

30. Strategies of product positioning
 Positioning in relation to:
 Attributes: durability, quality, style, design.
 Usage: heavy usage, light usage
 Competitors:
 Positioning :
• directly against the competitor
• Away from competitor
• In relation to different product class

31. Product repositioning
 It is required when performance drops or doesn’t materialize.
 Few repositioning strategies
 Image repositioning: only the image is changed
 Product repositioning: total product offering is adapted
 Intangible Repositioning: less tangible aspect of the product is given
more emphasis
 Tangible Repositioning: Both market and product is adapted.

32. Step in product Positioning
 Define market segment
 Determine which segment to target
 Understand the targeted customer’s needs
 Evaluate perceived positioning of competitors product
 Select positioning bases for product service vis a vis targeted customers'
needs and competitor's positioning in the market
 Communicate the selected positioning / image to the targeted customers.

33. Branding
 Brands?
 The culmination of a user’s total experience with the product over many
years.
 That experience is made of a multitude of good neutral and bad
encounters such as the way a product performs an advertising message,
a press repot, a telephone call, or a rapport with a sales assistant.
 Branding in business terms lies with the need for groups and individual
to have an identity that was easily recognizable by others.

34. Why do we brand products?
 A strong brand is now seen as key to commercial success by providing the following
main advantages:
 High brand equity
 Increased product awareness levels
 The ability to charge a premium
 Premium pricing
 Competitive edge
 Building relationships: e.g. Diageo- Smirnoff, Johnny Walkers, Captain Morgan
 Higher likelihood of repeat purchases
 Retail leverage
 New product success thanks to the brand name

35. Marketing Mix
 The marketing mix
 refers to the set of actions, or tactics, that a company uses to promote
its brand or product in the market.
 The 4Ps make up a typical marketing mix - Price, Product, Promotion
and Place. However, nowadays, the marketing mix increasingly
includes several other Ps like process, people, and physical evidence
as vital mix elements in context to services only.

36. Explanation of 4P’s
 Price:
 refers to the value that is put for a product.
 It depends on costs of production, segment targeted, ability of the market to
pay, supply - demand and a host of other direct and indirect factors.
 There can be several types of pricing strategies:
 Premium pricing: used in case of uniqueness of the product.
 Penetration pricing: to maximize the market share in short time scale.
 Economy Pricing: cost kept minimum

37.  Price skimming: charge high due to substantial competitive advantage.
 Psychological pricing
 Product line pricing: where there is rage of products and services and
pricing is done on the bases of benefits provided.
 Optional product pricing: Seller attempts to increase the amount
customer spends once they start to buy.
 Promotional pricing: buy one get one free
 Geographical pricing: online buying shipping charges

38.  Place:
 refers to the point of sale.
 Along with total channel of distribution and consideration of the
value chain for raw material through the customer.
 Various distribution intermediaries:
 Wholesalers: break down the bulk
 Agents: get orders
 Retailers: has strongest personal relationship with customer
 Internet: expose products to wide audience.

39. • Product:
refers to the item actually being sold.
Anything that satisfies customers needs.
The product must deliver a minimum level of performance; otherwise even the
best work on the other elements of the marketing mix won't do any good.
 Types of products:
 B2C: consumer products:
 B2B: Industrial Products:
 Durable goods: TV, PC’s
 Non durable goods: Fresh food
 Service products: cleaning broadband,
gardening
 Shopping goods: cars, clothes, shoes
 Specialty goods: antiques, classic cars, wedding
dress etc.
 FMCG: coffee, milk, tea etc..
 Capital goods: cars, vans, building
 Accessories: Pc’s Telephones, Mobile
phones
 Raw material: flour, yeast, sugar, water,
herbs ,spices
 Supplies: stationery, pens, papers
 Services: Transports. IT support,
Accounting.

40.  Promotion:
 this refers to all the activities undertaken to make the product or service
known to the user and trade.
 This can include:
 Personal selling
 Sales Promotion: coupons, discounts, competitions
 Public relations:
 Direct Marketing
 Trade fair and exhibition
 Advertising
 Sponsorship

41.  Physical evidence:
 Material part of services
 Customers tend to rely on physical cues to help them evaluate the product before
they buy it.
 The role of the marketer is to design and implement such tangible evidence.
 Types of evidence are:
 Packaging
 Internet
 Ambiences
 Paperwork
 Corporate branding (signs, symbols and artifacts)
 Business cards
 Building itself

42.  People:
 Most important element of any service or experience.
 They add value to an experience
 As a part of marketing mix :
 Training
 Personal selling
 Customer service

43.  Process:
 of giving a service, and the behavior of those who deliver are crucial to
customer satisfaction.
 Issues such as waiting times, the information given to customers and the
helpfulness of staff are all vital to keep customers happy.

44. Production Management
 Is an organizational function that deals with the planning, forecasting and marketing
the product at all the stages of product life cycle.
 It encompasses the broad set of activities required to get the product to market and to
support it thereafter.
 Objective:
 Design product strategies
 Spot market opportunities as it is the messenger to the market and delivers
information to the department
 Develop strategies for all the stages of product life cycle
 Generate new idea
 Empower the sales effort by defining sales process

45. Marketing Communications
 Marketing communication (MarCom) provides the means by which brands and
organizations are presented to their audiences.
 The goal is to stimulate a dialogue that will, ideally, lead to a succession of
purchases and complete engagement.
 Marketing communications is an audience-centered activity
 This interaction represents an exchange between each organization and each
customer; according to the quality and satisfaction of the exchange process, it will
or will not be repeated.
 Marketing communication includes advertising, direct marketing, branding,
packaging, your online presence, printed materials, PR activities, sales
presentations, sponsorships, trade show appearances and more; which attempts to
promote the interest of the brand, product range, and company.

46. The Marketing Communication
Mix
 The marketing communications mix consists of a set of tools (disciplines)
that can be used in various combinations and different degrees of intensity
in order to communicate with a target audience.
 Advertising
 Advertising is a non-personal form of mass communication that offers a
high degree of control to those responsible for the design and delivery of
advertising messages. However, advertising’s ability to persuade the target
audience to think or behave in a particular way is suspect.
 Furthermore, the effect on sales is extremely hard to measure.

47.  Personal Selling
 is traditionally perceived as an interpersonal communication tool that
involves face-to-face activities undertaken by individuals, often
representing an organization, in order to inform, persuade or remind an
individual or group to take appropriate action, as required by the sponsor’s
representative.
 A salesperson engages in communication on a one-to-one basis where
instantaneous feedback is possible.
 The costs associated with interpersonal communication are normally very
large.

48.  Sales Promotion
 Sales promotion comprises various marketing techniques that are often
used tactically to provide added value to an offering, with the aim of
accelerating sales and gathering marketing information.
 Like advertising, sales promotion is a non-personal form of
communication, but it has a greater capability to be targeted at smaller
audiences.
 It encourages quick action buyers.

49.  Public Relations
 Public relations is ‘the art and social science of analyzing trends,
predicting their consequences, counseling organizations' leadership, and
implementing planned programmes of action which will serve both the
organization's and the public interest.
 The increasing use of public relations, and publicity in particular,
reflects the high credibility attached to this form of communication.
 Publicity involves the dissemination of messages through third-party
media such as magazines, newspapers or news programmes.

50. Marketing Communication
Process
 Effective communication means effective marketing.
 Buyers’ perceptions of market offering are influenced by the amount
and the type of information they receive as well as their reaction to the
information
 There must be a good flow of information b/w seller and the buyer to
assist decision making that precedes the sales
 An effective marketing communication system also allows feedback
from the customer to the seller.

51. Marketing related messages
 Receivers of a message - greatly influenced by the nature of its source;
 Audience perceives a communicator as credible. Then they are more likely
to accept their view.
 Communicators underlying objective- audience less persuasive.
 Methods to Enhance credibility-
 advertisers use candid television interviews.
 Endorsement of the product bye an expert with appropriate knowledge.
 Credibility of the source is also a function of prestige/ status.
 Source is to be restated- repeat advertisement.

52. The development of MarCom
 Above the line promotional techniques- renting space on TV, newspaper.
Posters, radios etc.
 Below the line promotional technique: sales promotion, sponsorship, and
exhibitions.
 Marketing effectiveness depends on communication effectiveness.
 Professional researchers have developed
 Underlying theories using strategic elements of branding & marketing in
order to ensure consistency od the message delivery throughout
organization
 Market activate –information flows.

53. Expanding marketing’s
traditional boundaries

54. The whole area of marketing we now call Non traditional marketing or
alternative marketing or off street marketing. Major categories are as follows:
1. Ambient Marketing
1. Place Marketing
2. Astroturf Marketing
2. Presence Marketing
3. Buzz Marketing
3. Social Marketing
4. Cause Related Marketing
4. Social Media Marketing
5. Event Marketing
5. Sports Marketing
6. Experiential Marketing
6. Organizational Marketing
7. Guerrilla Marketing
7. Person marketing
8. Grass Roots Marketing
8. Viral Marketing