Introduction to

Marketing:
Sessions 1-2

“Marketing is too important to be left to the marketing department.”

KNOW YOUR FACULTY
Prof. Freda J Swaminathan

Faculty at FORE since 4 ½ years.

Graduated from the Indian Institute of
Management, Ahmedabad and
Illinois State University ( USA).

•Professional in Advertising,
Corporate Communications and Marketing.
Worked with leading organizations viz LINTAS ( 8 years),
JW Thompsons Associates ( 4 years ), Goodyear ( 3 years ),
Advertising & Sales Promotions – CK Birla group ( 6 years ) and the
Dalmias ( 3 years ).

•Worked on some of India’s leading FMCG brands and services.

•On the client side, handled major ad agencies including Leo Burnett,
McCann Erickson, Enterprise Nexus & Percept Advertising.
Wanted – a Marketing Manager
Responsibilities:
Strategy
1. Gather and analyze market intelligence for
defining marketing strategy, product
positioning and monitoring competitive
activity

2. Identify and segregate potential market

segments

3. Develop and implement a company-wide

plan to push products

4. Prepare an effective marketing plan and

deliver all marketing activities within the
agreed budget
Wanted – a Marketing Manager
Responsibilities:

Execution -

1. Analyze and build potential strategic alliances

for product lines at local/regional/national level for
sales and branding

2. Implement BTL Marketing strategies for Sales

and Branding (Customer Presentations/ Tie-ups,
Seminars, Database Marketing, Events and
Fairs, Promotional and Direct Mail Campaigns,
Online Marketing)

3. Develop Marketing Collaterals, Creative and

related marketing communication

4. Manage Advertising and PR Activities and

Negotiations
 5. Develop the Alternate Channels via
Franchisee / ICC/ Corporate and
Institutional Tie-ups and provide the
necessary training/support/coordination to
generate business

6. Manage and Expand the existing

Franchisee Model

7. Recruit BDMs/BDEs/ Marketing and

Sales Executives
Provide Sales Training to the entire team

8. Lead, Motivate and Incentivize the Sales

team
9. Implement exact Sales and
Reporting systems and follow through
processes

10. Monitoring performance of the

team to achieve defined targets

11. Effectively communicate across

departments to drive fast execution

12. Vendor Management

Core Courses – Marketing 1 & 11
Marketing 1
Decision areas in Marketing
• Assessing market opportunity
– Customer analysis
– Competition Analysis
– Assessing Marketing Environment
• Designing the Market Offering
– Product offering
– Promotions
Marketing 2
• Market Assessment and Forecasting
• Market Research and Information System
• Delivering the Offer
– Sales and Distribution Management
– Pricing
• Emerging Issues in Marketing
Assessment Methods and Marks Distribution
Method Weight

Class Participation & In class 15%

presentation
Written submissions 30%
Group Projects @ 5*3 =15
Case Analysis 2@5 = 10
Quiz @ 2.5 * 2=5
Mid Term 15%

Final Exam 40%

Projects due in July, 2009
Group Projects – 3 nos.
Group to be of 5 members
Read the assignment given in the Reading
Material.
Report is due on the day of presentation.
First presentation on Session 5.
Second presentation on Sessions 13 & 14
Case analysis
Vora & Co – due on Session 7
Quiz on Session 10
 July
August

M T W TH F S Week end

1 2 3 4
JULY 30th June Marks &
Spencers
Introduction -2
-1

6 7 8 9 10 11 Group
M&S 2009 -3 Case : Kinko- Project
How to market 4
for a recession

13 14 15 16 17 18 Case
Group Project- Case on Analysis:
5 Segmentatio Vora & Co
n: TITAN - 6

20 21 22 23 24 25 Prepare
Vora & Co: Case on Competition Chapters :
Services 9 1,6,7,8
Discussion Kerala
7 Tourism- 8

27 28 29 30 31 Group
Quiz # 1 Case : Kodak Mid Term Project :
Competition - versus Fuji - Review - 12 environment
10 11
 July
August

M T W TH F S Remarks

1
AUGUST
3 4 5 6 7 8 Mid Term
Group Project Group Project Preparation
- 13 - 14

10 11 12 13 14 15
Mid Ter m Mid Ter m Mid Ter m Case : Apple
15

17 18 19 20 21 22 Assignment
Understanding Case : Social Product 2
Product Networking Planning New Kids on
16 Sites 18 the Block
17
24 25 26 27 28 29 30
Positioning Case :Fair & Prepare for
19 Lovely Quiz
Brand Equity
20
 July
August

M T W TH F S Remarks

September 1 2 3 4 5
Quiz # 2 Group
IMC – Case : Presentation
Innova - 21 - 22
7 8 9 10 11 12
Group Wrap Up - 24
Presentation -
23
14 15 16
End Term
 Role of Marketing in an Organization

“ In the factory we produce cosmetics.

In the drugstore we sell hope.”
Charles Revson

Work in Pairs:
Make a similar statement for another
Product.
Introduction to Marketing

Activity
How Marketing Savvy are you ?
1. ( 1 mark ) Who said this:

“They can have any color they want as long as it is black.”

a) G D Birla founder of Hindustan Motors.

b) Henry Ford founder of Ford
c) Henry Royce founder of Rolls-Royce
d) Louis-Joseph Chevrolet co founder of Chevrolet
e) Kiichiro Toyoda founder of Toyota
Tata Jamsetji
 
Walmart Sam Walton
 
CNN Ted Turner
 
Kingfisher Vijay Mallyya
 
Nike Phil Knight
 
VIP Suitcases Piramal
 
Virgin Richard Branson
 
Reliance Ambani
 
FedEx Fred Smith
 
Satyam Ramalingam Raju
 
Sony Akio Morita
 
Bharti Sunil Mittal
 
Ford Chrysler Lee Iacocca
 
HCL Shiv Nader
 
MicroSoft Bill Gates
 
Eveready Khaitans
 
Morepen Labs Burnol
Heinz Complan
Marico Kaya
HUL Kwality Walls
Tata Indica
P&G Ariel
Pidilite Fevicol
Nestle Cerelac
Wipro Santoor
ITC Sunfeast

( 1 mark ) Which IT company is nicknamed 'Big Blue'?

Hewlett Packard
Dell
IBM
Sony
Compaq
Michelin Bibendum
Asian Paints Gattu
Nike Phil Knight
Amul Moppet
Ferrari Horse
McDonald’s Ronald
Air India Maharaja
Adidas Three stripes
Vodafone Zoozoo
Nirma Dancing girl
Kingfisher Bird
7 Up Fido
Four Eras of Marketing History
Era Production Sales Prior Marketing Relationship
Prior to 1920’s to 1950’s Since 1950’s Since 1990’s

In the United States and other highly industrialized economies

“A good product “Creative advertising and “The consumer rules! “Long term relationships
will sell itself.” selling will overcome Find a need and fill it.” with customers and other
consumers’ resistance and partners lead to success.”
convince them to buy.”
Relationship Marketing

Advocate The development, growth,

and maintenance of long-
term, cost-effective
Loyal
Supporter exchange relationships
with individual customers,
Regular
suppliers, employees, and
Purchaser
other partners for mutual
benefit.
New
Customer
Customer Needs / Wants / Demands
Customer
Needs ( Basic )

Eg. Food
Air, shelter
Wants Demands

Directed at specific Wants for

Objects – shaped by specific products
backed by an
one’s society. Eg. ability to pay.
Rice, dals, fruits Eg : Pepsi, Benz,
etc.
l 16
I want it, I need it…..

5 Types of Needs

• Stated needs:
• Real needs:
• Unstated needs:
• Delight needs:
• Secret needs:
I want it, I need it…..

5 Types of Needs

• Stated needs: admission to a good institute.

• Real needs: must afford the fees.
• Unstated needs: good teaching from faculty
• Delight needs: good placement
• Secret needs: good brand to last a life time
 What is Marketing?
Marketing is finding out what
the consumer wants and then
giving it to him / her, in a commercially
viable manner.

Marketing therefore becomes

an attitude, a state of mind and a philosophy
which guides the operations of a business.
.
What is Marketing?

"Marketing is the activity, set of

institutions and processes, for creating,
communicating, delivering and
exchanging offerings that have value for
customers, clients, partners,
and society at large.“

AMA, 2008
What is marketing ?

An organizational function and a set of processes for:

creating,
communicating, and
delivering value to customers and
for managing customer relationships

in ways that benefit the organization and its stakeholders

Marketing Variables - Marketing Mix

• Product
• Price
• Promotion
• Place

Using the Marketing Mix to build long term relationships.

Concepts of Sesson 1
• What is Mktg
• History of marketing
• Relationship marketing
• Consumer orientation in marketing
• Needs wants demands
(basic) ( aimed at object) desire for brand

• Marketing mix
Next session : Mark’s & Spencer’s. Read the case for a mini quiz.
Mark’s & Spencer’s

Session 2
Marks & Spencer
• What is the problem that Stuart Rose was
facing when he took charge of M&S?
Marks & Spencer

• What is M&S strategy

• What value is being created
• What should S Rose do and why
Stuart Rose’s concerns

Stakeholders

Processes

Resources

Organization
Marks & Spencer

Decision Areas in Marketing

•Creating customer value
•Strategic planning
Characteristics of Company

• No senior mngt sign off – too much delegation

• Too much inventory
• High profile customers
• St Michael’s – a value for money brand
• 16 sub brands .
• Advertising not aspirational but functional
• Diverted from retail heartland – not customer focused.
• New competition like Next, Walmart ( ASDA)
• Led by consultants experimenting with projects
• De motivated staff
What Stuart Rose did
• Fighting off a hostile takeover
• Managing Press
• Support of 2 trusted execs – in IT and Marketing
• Streamlined 5 sourcing offices
• Made suppliers conscious of this being ‘our’ problem and reduced costs
• House cleaning – off many brands
• Retrenched 650 staff but retained home grown talent
• Motivated retained staff – making them customer focused
• HR measures
• Stock management – 2 crimes : overstocked and short of stock
• Daily reporting to ceo of stock position
• Problems are not allowed to fester
• Focus on the basics of the business – improve product / store / service
• Selling off their financial services to HSBC
• Buying Per Una womens wear brand
Concepts of Sesson 2
• Strategic and Tactical Marketing
• Marketing myopia
• Case Analysis: No Alternatives, no problem!
Problem Definition
Co objectives
Alternative strategies – SWOT of same
Recommendation
Contingency Plan
Calendar – Till Mid Term
July 9th : Kinko , the case
July 14th : Consumer Behavior – GP
July 16th : Financials of Marketing
Week end: Vora & Co : Write Case analysis
July 20th : Kerala Tourism
July 21st : Titan
July 23rd : Competition lecture
Week end : Prepare for Quiz on Chs 1,6,7,8
July 27th: Quiz / Competition
July 28th : Kodak versus Fuji
July 30th : Mid Term Wrap up
Aug 3rd / 4th : Group Presentations on environment
Project 1
– What were the triggers of purchase.
– What were the stages in the purchase processes.
– What inputs were sought in each of these stages.
– Who played what kinds of roles in each stage
and
– Approximately how much time was taken in each
stage.
– Was there any post purchase dissonance?
Methodology
• Based on the learning’s and insight from the in-depth discussions
with THREE consumers, please draw implications for marketing
decisions.
• Ask probing questions.
• Do not construct a structured questionnaire. Just carry with you a
list of
questions to guide you discussions.
• The report should be limited to 3 pages ( one and a half space, 12pt
Times Roman / Arial ) including Appendix, if any.
• The report is due just before the presentation.
• Late submissions irrespective of reasons, however genuine, will
have a 50% reduction in marks if the report is submitted after the
next 2 days and will not be accepted beyond 2 days.
M&S – 2004 – Group activity
What are the rules of doing business in the
retail space?

Was there anything new being done by

Stuart Rose?
Rules of the Game
Paradigm shift – changing the rules of the
game.
Marketing….

When you create a

concept, you
create a future…
Marketing Mix and the Customer

Four Ps Four Cs
• Product • Customer solution
• Price • Customer cost
• Place • Convenience
• Promotion • Communication
Marketing Myopia

Management’s failure to recognize the

scope of its business.
Avoiding Marketing Myopia by Focusing on
Benefits
Company Myopic Description Marketing-Oriented
Description
MCI Worldcom “We are a telephone “We are a communications
company.” company.”
Northwest Airlines “We are in the airline “We are in the
business.” transportation business.”
Prudential Securities “We are in the stock “We are in the financial
brokerage business.” services business.”
Sony “We are in the video “We are in the
game business.” entertainment business.”
 Product Process

Make Product Sell Product

(Design, Procure, Make) (4 P’s / 4 C’s)

Value Creation & Delivery

Provide & Communicate

STP Value through
Segmentation, Targeting,
Positioning 4 P’s / 4 C’s

Strategic Marketing Tactical Marketing

 How do we identity needs, wants , desires and market to diverse
and large crowds :
Mktg
4 P’s Envn.
Societal
Forces
Customer

STP Satisfaction

Markets:
Brands & Channels
Benefits Supply Chain
Competition

Internal Marketing: Relationship Marketing;

Integrated Marketing
Consumer Company
Capabilities Capabilities
 HOLISTIC RELATIONSHIP MARKETING FRAMEWORK
1) Who is involved?

CUSTOMERS CORPORATION COLLABORATORS

 HOLISTIC RELATIONSHIP MARKETING FRAMEWORK
1) Who is involved?

CUSTOMERS CORPORATION COLLABORATORS

MARKET
SPACE 2) How can we define relevant market space?
 HOLISTIC RELATIONSHIP MARKETING FRAMEWORK
1) Who is involved?

CUSTOMERS CORPORATION COLLABORATORS

MARKET
SPACE 2) How can we define relevant market space?

3) What are the potential opportunities emerging from

POTENTIAL the market space?
OPPORTUNITIES
 HOLISTIC RELATIONSHIP MARKETING FRAMEWORK
1) Who is involved?

CUSTOMERS CORPORATION COLLABORATORS

MARKET
SPACE 2) How can we define relevant market space?

3) What are the potential opportunities emerging from

POTENTIAL the market space?
OPPORTUNITIES

4) What business capabilities and infrastructure

BUSINESS required?
INVESTMENT
 HOLISTIC RELATIONSHIP MARKETING FRAMEWORK
1) Who is involved?

CUSTOMERS CORPORATION COLLABORATORS

MARKET
SPACE
2) How can we define relevant market space?
Explore
Value

3) What are the potential opportunities emerging from

POTENTIAL the market space?
OPPORTUNITIES
Create
value

Deliver
4) What business capabilities and infrastructure
BUSINESS Value
required?
INVESTMENT

CUSTOMER CORE COLLABORATIVE

FOCUS COMPETENCIES NETWORK
 COMPETITIVE PLATFORMS
Customer Core Collaborative
Focus Competencies Network

COGNITIVE COMPETENCY RESOURCE

SPACE SPACE SPACE

Market Business

Offerings Architecture

Creating
CUSTOMER BUSINESS BUSINESS
Value VALUE DOMAIN PARTNERS

Marketing Operational
Activities
System
Delivering
Value
CRM ERP SCM

Printed on CANON
M&S
How did strategies change over 2004 to
2008?
M&S Now
How should M&S market in today’s
downturn?

Group Activity :
 Defining the corporate mission for M&S

• Mission
– What business is M&S in? What businesses should
we be in? What do we do best? What are the
values/ethics of the firm?
– Define business by need rather than product
features.
- Lodging vs hotel
- Quick service restaurants vs fast food hamburgers
 Characteristics of Core Competencies

• A source of competitive advantage

• Applications in a wide variety of markets
• Difficult to imitate
Categories of Marketing Alliances

• Product or Service Alliances

• Promotional Alliances
• Logistics Alliances
• Pricing collaborations
Concepts of Sesson 3 & 4
• A holistic marketing framework
• Marketing myopia
• Core competency
• B2B marketing
• Business buying behavior
Consumer Decision Making
Process
Project 1
– What were the triggers of purchase.
– What were the stages in the purchase processes.
– What inputs were sought in each of these stages.
– Who played what kinds of roles in each stage
and
– Approximately how much time was taken in each
stage.
– Was there any post purchase dissonance?
What Influences Consumer Behavior?
• Cultural factors – related to values/social
class / religion/community
• Social factors – related to reference
groups, family, roles & status.
• Personal factors – related to family life
cycle / occupation / personality / self-
concept / life style

6-62
Social Factors

Reference
Family
groups

Social
Statuses
roles

6-63
Reference Groups
• Membership
• Primary
• Secondary
• Aspirational
• Dissociative

6-64
Family
• Family of orientation
– Religion
– Politics
– Economics
• Family of procreation
– Everyday buying behavior

6-65
Personal Factors
• Age • Personality
• Life cycle stage • Values
• Occupation • Lifestyle
• Wealth • Self-concept

6-66
Socio economic Classification
• Urban : Occupation & Education ( SEC A,
B,C & D )
• Rural : Type of House ( pucca, semi-pucca
and kucha ) and education ( R 1, R2 etc )
Socioeconomic Classification (SEC) Matrix—India (Urban)
Key Psychological Processes

• Motivation
• Perception
• Learning
• Memory
Motivation

• Maslow’s hierarchy of needs

• Freud’s theory
• Herzberg’s two-factor theory
Maslow’s Hierarchy of Needs

Self-Actualization
(Self-fulfillment)
Ego Needs
(Prestige, status, self esteem)

Social Needs
(affection, friendship, belonging)

Safety and Security Needs

(Protection, order, stability)

Physiological Needs
(Food, water, air, shelter, sex)
Besides ‘Needs’ behavior is due to :
• Unconscious psychological process
( Freud )
• Motivations that cause satisfaction or
dissatisfaction ( Herzberg )
• High involvement or low involvement
product
Perception

• Selective attention
• Selective retention
• Selective distortion
• Subliminal perception
Project 1
– What were the triggers of purchase.
– What were the stages in the purchase processes.
– What inputs were sought in each of these stages.
– Who played what kinds of roles in each stage
and
– Approximately how much time was taken in each
stage.
– Was there any post purchase dissonance?
How do consumers make buying decision?
• Initiators
• Influencers
• Deciders
• Buyers
• Users
Consumer Buying Process
• Problem recognition
• Information search
• Evaluation
• Purchase decision
• Postpurchase behavior

6-76
Other Theories of
Consumer Decision Making
Involvement
• Elaboration likelihood
model
• Low-involvement marketing
strategies
• Variety-seeking buying
behavior
6-77
Decision Heuristics
( non rational)
• Availability – quickness & ease
• Representativeness ie how
similar is the outcome
• Anchoring and adjustment .
First impressions are lasting
impressions.
Project 1
– What were the triggers of purchase.
– What were the stages in the purchase processes.
– What inputs were sought in each of these stages.
– Who played what kinds of roles in each stage
and
– Approximately how much time was taken in each
stage.
– Was there any post purchase dissonance?
 Consumer’s Purchase Decision
External Factors Buyer’s Black Box Outcomes
Characteristics resulting
from:
-social /reference groups
Economic Conditions -family values
-role & status Product form

New Technology Brand

Personal circumstances
Media -socio-economic
-life style Retail outlet

Law & Politics -psychological

process &personality Value

Social Culture Form of payment

Decision process
Marketing mix -need recognition
-information search Timing of
(competitor & own) purchase
-evaluation
-purchase intention
-purchase
-post purchase
perceptions
Session on Consumer Behavior
• Reference group
• Aspirations
• Maslow
• Freud
• Herzberg
• Selective Attention
• Decision making process
• High & Low involvement