The ppt covers the basics marketing principles given by Philip Kotler: The importance of marketing Core Marketing Concepts Company Orientations Segmentation-Targeting-Positioning 7p’s Framework

1. Digital
Marketing
Made by - Priyanka Gautam

2. Unit 1 -
Marketing
Fundamentals
● Importance of Marketing
● Core Marketing Concepts
● Company Orientations
● Segmentation-Targeting-Positioning
● 7p’s Framework
● PLC
● Pricing Strategies
● Types of distribution channels
● Promotion Mix

3. Marketing -
Definition
Marketing is about identifying and meeting human and
social needs. Or “Meeting needs profitably”
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 - American
Marketing Association

4. Importance of
Marketing
1) Marketing helps in transfer, exchange,and movement of goods :
Marketing involves the design of the products acceptable to the
consumers and the conduct of those activities which facilitate the
transfer of ownership between seller & buyer
2) Marketing is helpful in raising and maintaining the standard of
living of the community : By making available uninterrupted
supply of goods and services to consumer at a reasonable price
3) Marketing creates employment :
4) Marketing as a source of new ideas: understanding new demand
patterns and making goods available accordingly
5) Economic Forces : Survival in the unforgiving economic
environment
6) Financial success: Ensuring sufficient demand for products and
services so the firm can make a profit.

5. Contd.. 7) Social acceptance : Introducing and gaining acceptance of new
products among the society
8) CEOs perspective of Marketing : Building strong brand, loyal
customer base, and creating intangible assets adding value to firm.
9) Marketing acts as a basis for making decisions : what, how, when,
how much and for whom to produce? Also, what prices to set, where
to sell, and how much to spend on advertising, sales, the Internet or
mobile marketing etc.
10) Coping up with competition : Making use of different medium to
improve market share and customer connect.

6. Core Marketing Concepts
1) Needs, Wants, and Demands
2) Target Markets, Positioning and Segmentation
3) Offerings and Brands
4) Value and Satisfaction
5) Marketing Channels
6) Supply Chain
7) Competition
8) Marketing Environment

7. Core Marketing
Concepts -
1) Needs, Wants
and Demands
Needs - Any basic requirement
Wants - A need directed towards a specific product
Demands - When we actually have the ability to buy products to meet
our needs and wants
Five types of needs :
1) Stated Needs - The customer wants an inexpensive car
2) Real Needs - The customer wants a car whose operating cost,
not initial price, is low
3) Unstated Needs - The customer expects good service from the
dealer
4) Delight Needs - The customer would like the dealer to include
an onboard GPS navigation system
5) Secret Needs - The customer wants friends to see him or her as
a savvy customer

8. Core Marketing
Concepts -
2) Target Markets,
Positioning, and
Segmentation
Selecting the group of buyer which offers greatest
opportunity.
Dividing the market into segments & target them
based on these segments : preferences, demographics,
psychographic, behaviours etc.
Developing market offer that positions the product
among the target audience/buyers
Eg. : Volvo develops its cars for buyers to whom safety
is a concern, positioning its vehicles as the safest a
customer can buy.

9. Core Marketing
Concepts -
3) Offerings and
Brands
Putting forth a value proposition i.e a set of benefits that satisfy those
needs.
Offering - a combination of products, services, information, and
experiences
Brand - an offering from a known source.
All companies strive to build a brand image with as many strong,
favourable, and unique brand associations as possible.
Eg: Starbucks is known for its quality and customer experience
Woodland shoes are solid and are ideal choice for outdoors. They last
very long
Coca cola is a brand known for happiness, joy, and experience

10. Core Marketing
Concepts -
4) Value and
Satisfaction
Value - a combination of quality, service and price
(qsp) called customer value triad.
Marketing => the identification, creation,
communication, delivery, and monitoring of customer
value.
Satisfaction - reflects a person’s judgement of a
product’s perceived performance in relation to
expectations.

11. Core Marketing
Concepts -
5) Marketing
Channels
Three Channels:
1) Communication Channel : deliver & receive messages from target
buyers.
E.g: Newspaper, magazine, television, mail, phone, posters etc.
2) Distribution Channel: to display, sell, or deliver the physical product
or services to the buyer.
E.g: Internet, mail, mobile, distributors, wholesalers, retailers, and
agents as intermediaries
3) Service Channel : include warehouses, transportation companies,
banks, insurance companies etc.

12. Core Marketing
Concepts -
6) Supply Chain
A longer channel : Raw materials -> Components ->
Finished products -> Final buyers
When a company acquires competitors or expands
upstream or downstream, its aim is to capture a higher
percentage of supply chain value.

13. Core Marketing
Concepts -
7) Competition
All the actual and potential rival offerings and
substitutes a buyer might consider
E.g. : Car manufacturer can buy steel from Tata Steel or
Steel Authority of India or import it from abroad; or
buy aluminium for certain parts to lighten the car’s
weight; or engineered plastics for bumpers instead of
steel. Tata Steel would be thinking narrow of
competition if it thought only of other integrated
products than by other steel companies. In fact, in the
long run, steel companies are more likely to be hurt by
substitute products than by other steel companies.

14. Core Marketing
Concepts -
8) Marketing
Environment
1) Task Environment: includes actors engaged in producing, distributing, and
promoting the offering.
Company, suppliers, distributors, dealers, target customers, market
research agencies, advertising agencies, banking and insurance
companies, etc.
2) Broad Environment: includes demographic environment, economic
environment, social-cultural environment, natural environment,
technological environment, and political-legal environment.
Marketers need to pay attention to these environment to grab the
constantly emerging opportunities

15. 1 2 3
Marketplace, Marketspace, & Metamarkets
Marketplace : place where
exchanges of goods & services
takes place.
E.g. Offline stores
Marketspace: place which is a
virtual place
E.g.: Shopping websites
Metamarket : a particular good
is sold apart from it all the
complementary services or the
goods sold with it.
E.g.: Automobile -
Manufacturers, Insurance
Providers, Service Centers,
Spares, Driving academy,
Finance companies etc.

16. Company Orientations
1) The Production Concept
2) The Product Concept
3) The Selling Concept
4) The Marketing Concept
5) The Holistic Marketing Concept

17. The Production
Concept
Concept: Consumers prefers products that are
widely available and inexpensive
Focus : Achieving high production efficiency, low
costs, and mass distribution
Also, used when the company plans to expand
market
The Product
Concept
Concept: Consumers favour products offering
the most quality, performance, or innovative
features
Focus: Improved product
A new improved product can failed if it isn’t
priced, distributed, advertised, and sold
properly

18. The Selling
Concept
Concept: Consumers and businesses, if left alone, won’t buy enough of
the organisation’s products
Focus : To sell what they make, rather than make what the market wants
Practised with unsought goods - goods buyers don’t normally think of
buying such as insurance and cemetery plots. Marketing based on hard
selling is risky.
The Marketing
Concept
Concept:To find not the right customer for your products, but the right
products for your customer
Focus: Achieving organisational goals is being more effective than
competitors in creating, delivering, and communicating superior
customer value to your target customers.
Selling focuses on the needs of the seller, marketing on the needs of
the buyer.

19. The Holistic
Marketing Concept
Concept:
- Based on development, design, and
implementation of marketing programs,
processes, and activities that recognise their
breadth and interdependencies
- Acknowledges that everything matters in
marketing - and that a broad, integrated
perspective is often necessary
- Recognises and reconciles the scope and
complexities of marketing activities

20. Integrated Marketing
Integrated marketing is an approach to create a unified and seamless experience for consumer to interact with the
brand by designing and directing all communication (advertising, sales promotion, direct marketing, public relations, and
digital marketing) in such a way so that all work together as a unified force and centers around a strong and focused
brand image.
Internal Marketing
Internal Marketing is the task of hiring, training, and motivating able employees who want to serve customers well. It
requires vertical alignment with senior management and horizontal alignment with other departments, so everyone
understands, appreciates, and supports the marketing effort.

21. Performance Marketing
Performance Marketing requires understanding the financial and nonfinancial returns to business and society
from marketing activities and programs. Top marketers are increasingly going beyond sales revenue to examine
the marketing scorecard and interpret what is happening to market share, customer loss rate, customer
satisfaction, product quality, and other measures.
Relationship Marketing
Relationship marketing focuses on building a strong and long-lasting relationship with all who can directly or indirectly
add to the success of an organization. The major parties in business can be its shareholders, employees, channel
partners, customers and financial institutions.

22. Segmentation-Targeting-Positioning
(STP)
Segmentation : Identifying the segmentation variables and segmenting the market
Targeting : Evaluating the attractiveness of each segment & selecting the target
segment
Positioning : Identifying possible concepts for each target segment & selecting,
developing and communicating chosen positioning

23. Segmentation
Market segment consists of a group of
customers who share a similar set of
wants.
Marketers task is to identify segment and
decide which ones to target !!
Bases for segmenting consumer markets:
1) Geographic Segmentation
a) Region
b) City
c) Rural and semi-urban areas
Examples. :
- “in-city” courier companies - delivering mail and
packets on the same day within a specified area
- FMCG goods in smaller pack sizes in rural areas
- Raincoats in areas receiving high rainfall, ice
creams in hot regions

24. 3) Psychographic
a) Lifestyle
b) Personality
c) Influence by peers
Examples:
- McDonald with a different menu for India i.e.
McVeggie, McAloo tikki for vegetarians and
avoid usage of beef in non veg burgers.
- Titan range - Raga, Bandhan, Edge, Forever
Kolkata, Regaila etc.
- Club Memberships
- Harley Davidson community (masculine, tall &
loved)
- Gucci & premium brands targeting high social
class segment
2) Demographic
a) Age
b) Family Size
c) Gender
d) Income
e) Occupation
f) Education
g) Socio-Economic Classification
Examples :
- Titan Zoop watches for 6-14 yrs old children
- Discovery, History, National Geographic Channels for
education & entertainment enthusiasts
- Honda Activa, TVs Scooty, Hero Pleasure etc. for females
- Nano cars by Tata Motors

25. 4) Behavioural
a) Occasions
b) Needs & Benefits
c) User Status
d) Usage Rate
e) Loyalty Status
f) Readiness Stage
g) Attitude toward product
Examples : Life Cell , preserving baby’s umbilical cord stem cells at the time of birth serving as bio-insurance for
children. The stem cells can be used at later stages in life to treat some genetic disorders an life-threatening
diseases through genetic engineering.
Surf Excel Matic Top-Load and Ariel Front-o-Mat suitable for washing machines
Tourism industry Airlines/ Restaurant, price sensitive traveller travel at the lowest cost
Buying certain products over and over again like sopas, toothpaste

26. Steps in
Segmentation
1) Needs Based Segmentation : Group users based on similar needs
2) Segment Identification : For each needs based segment, determine which demographics, lifestyling and
usage behaviours make the segment distinct and identifiable
3) Segment Attractiveness : Using predetermined segment attractiveness criteria such as market growth,
competitive intensity and market access
4) Segment Profitability: Determine segment profitability
5) Segment Positioning: For each segment create a “value proposition” based on that segment’s unique
customer needs and characteristics
6) Segment “Acid-Test” : Create segment storyboard to test the attractiveness of each segment positioning
strategy
7) Marketing-mix strategy: Expand positioning strategy to include all aspects of marketing mix product, price,
promotion and place

27. Targeting

28. Effective
Segmentation
1) Measurable - size, purchasing power, and
characteristics
2) Substantial - large and profitable enough
to serve
3) Accessible - Can be effectively reached and
served
4) Differentiable - are conceptually
distinguishable and respond differently to
different marketing-mix-elements
5) Actionable - effective programs can be
formulated for attracting and serving the
segments

29. Michael Porter’s five
forces
(How attractive the
market segment is?)

30. Evaluating and
Selecting the Market
Segments
Two Factors to keep in mind
1) Segment’s Overall
attractiveness &
2) Company’s objectives
and resources
Approaches
1) Full Market Coverage
2) Multiple Segment Specialisation
3) Single-Segment Concentration
4) Individual Marketing
5) Ethical Choice of Market Targets

31. Positioning

32. Definition & Purpose The act of designing the company’s
offering and image to occupy distinctive
place in the mind of the target market.
Positioning requires that marketers define and
communicate similarities and differences between their
brand and its competitors.
- Aimed at developing strategies to gain
competitive Advantage
Brand Image and reputation are the results of the
positioning process.

33. First Step in
positioning
Determining a competitive frame of reference i.e. which other
brands a brand competes with and which brand be the focus of
competitive analysis
1) Identifying Competitors (PespiCo - Coca Cola, Citigroup -
Bank of America, Burger King - McDonald, Duracell-
Energizer)
2) Analysing Competitors - What is each competitor seeking in
the market? What drives each competitor’s behaviour? (size,
history, current management, financial situation etc.)

34. Choosing Possible Competitive Advantage
Product Differentiation - Features, Performance, Style & Design, or Attributes
E.g. iPhone (easier interface than android, & has status quo attached to it)- Android,
Fossil vs Titan (preference for swiss watches)
Services Differentiation - Delivery, Installation, Repair Services, Customer training services
E.g. LG, Fedex, Zappos, shopify etc.
Image Differentiation - Symbols, atmospheres, events
E.g. Brand such as Park Avenue, Louis Philippe, Van Heusen, Allen solly work hard to develop and maintain
distinctive images.
Employee Differentiation - Hiring, Training better people than competitors do
Singapore airlines is well regarded in large part because of its flight attendants. Medical representatives to
improve credibility with doctors
Channel Differentiation - Efficient and effective distribution channels
Eureka forbes, marketers of vacuum cleaners and water purifiers - direct-to-home channel

35. Examples 1) Dettol & Savlon
Dettol : strong smell, liquid turning cloudy when poured on water, and the stinging
sensation
Savlon: different smell, liquid did not turn cloudy in water, and no stinging sensation
2) Sensodyne : took opportunity of the positioning gap for a toothpaste appropriate for
sensitive teeth
Colgate : Colgate sensitive, and colgate sensitive pro-relief
3) BMW : luxury and performance driven cars
Mercedes, Audi, Jaguar etc

36. Brand Mantras - Designed for internal purposes in mind
- What the brand is and what it is not
- Heart and soul of the brand
- Help marketers to stay on the track
McDonalds :
Brand Mantra - “Food, Folks, and Fun”
Tagline - I’m Lovin it
Nike : “Authentic athletic performance”
Tagline - Just Do it
Disney : “Fun family entertainment”
Tagline - The Happiest place on earth

37. Some More
Positioning
Possibilities
1) Attribute Positioning - different features
2) Benefit Positioning - talks about benefits like convenience, price,
etc
3) User Application Positioning - different ways or application of the
product
4) User Positioning - different product is made for different
customers
5) Competitor positioning - comparison b/w competitor’s products

38. 4 Major positioning
errors
1) Under Positioning - firm is not able to clearly
define its product i.e. reason to buy the product.
E.g. solar lamp
2) Over Positioning - consumers think the product
is for a select audience given its positioning
emphasis E.g aquaguard, jewelry brands
3) Confused Positioning - claiming too many
benefits and claims in too many segments. E.g.
4) Doubtful Positioning - benefits that doesn’t
convince the customers. E.g. Fairness creams

39. Positioning
Framework
Trout & Ries Suggest a six-step
question framework for successful
positioning
1) What position do you currently own?
2) What position do you want to own?
3) Whom you have to defeat to own the position
you want
4) Do you have the resources to do it?
5) Can you persist until you get there?
6) Are your tactics supporting the positioning
objective you set?

40. 7 P’s of Marketing

41. Marketing Mix P’s
1) Product - Features, advantages, needs, style, quality, branding, availability, variants, customer services,
etc.
2) Price - Payment methods, profit margins, discounts, etc.
3) Place - trade channels, distributions, delivery turnaround, access to customers, etc.
4) Promotion - advertising, sales tactics, direct marketing, PR, etc.
Extended P’s
1) People- staff, training and skilling, customer service incharges, recruitment
2) Process - customer focus, R&D, IT support
3) Physical Evidence - product packaging, online experience, delivery experience etc.

42. An example of a company using the 7Ps strategy
Take a look at HubSpot as an example, which was founded in 2006; Hubspot has 8,000+ customers in 56
countries and sells software. What does their marketing mix look like?
This is a top-level overview; you would take this into greater detail and ask the following questions:
1. Products/Services: Integrated toolset for SEO, blogging, social media, website, email and lead
intelligence tools.
2. Prices/Fees: Subscription-based monthly, Software-As-Service model based on number of contacts
in database and number of users of the service.
3. Place/Access: Online! Network of Partners, Country User Groups.

43. 4. Promotion: Directors speak at events, webinars, useful guides that are amplified by SEO and
effective with SEO. PPC Social media advertising, e.g. LinkedIn.
5. Physical Evidence: Consistent branding across communications.
6. Processes: More sales staff are now involved in conversion.
7: People: Investment in online services.
8. Partners: Hubspot looks to form partnerships with major media companies such as Facebook and
Google plus local partners including Smart Insights who it is collaborating with on research in Europe.