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A sneak-peek into the big bad world of marketing

brought to you by the coolest and most vibrant


Interest Group on Campus: \m/Power

mPower (or rather \m/Power, as we are better known)


is the Marketing Interest Group of IIM Kozhikode.
Apart from industry interactions with eminent
marketers via workshops and seminars, we, at
\m/Power conduct events like quizzes, extempore,
debates and Group Discussions.
The marquee events at \m/Power include the KMAC
(Kozhikode Marketing Acumen Certificate), which
would probably be your first CV point containing the
word marketing. We also prepare you for the all
important summer internships by means of experience
sharing, briefing about the companies, and by
organizing mock GDs and interviews for the entire
batch.
You can connect with us via our Facebook page
(facebook.com/mPowerIIMK) and/or our blog
(mpower.iimk.ac.in). You can also write to us at
mpower@iimk.ac.in.

\m/arketing, what is it?


People say marketing is same as selling. Is
it?

Of all the things, what all can be


marketed?

Who are the gentlemen who market anyway?

Err whats this STP then?


Rightso all gentlemen market the same way?

According to the American Marketing Association,


Marketing is an organizational function and a set of
pro-cesses for creating, communicating, and delivering
value to the customers and for managing customer
relationships in ways that benefit the organization and
its stakeholders.
Started fretting already? Well, theres no need to.
\m/Power is at you service. To cut the long things
short, Marketing is meeting needs profitably.
So heres how it goes:
Creating

Communicating

Delivering

By authoring the Harry Potter series, J.K. Rowling


created value. By value, we mean any combination of
Quality, Service and Price. By the viral word-of-mouth
campaigns and in-store promotions, the proposed value
was communicated to the potential buyers. Finally, by
means of online and in-store sales, the value was
delivered.

Selling is the most visible leg of marketing. If


we go back to the sequence discussed before,
selling deals with delivering the value that has
been created and communicated. Peter Drucker,
a Management Guru opines that the purpose of
marketing is to make Sales superfluous. In other
words, the product should sell itself.
However, we believe that Sales is the most
elemental facet of Marketing. Why would you
choose Slice over Minute Maid? Both taste the
same. It is sometimes the shape of the bottle or a
recent catchy advertisement of that product
which lures a customer to prefer one product
over the other. In most cases, the product which
is kept at eye level, is pitched for by the seller or
even carries seasonal discounts, is the one more
likely to be preferred over the other.

Goods: Cars, trucks, machinery, TV sets


Services: Airlines, hotels, car-rentals,
boutiques

Events: FIFA World Cup, IPL, Olympic


Games

Experience: A theme-based restaurant


like Machester United Caf Bar, or an
amusement park like Wonder-la or
Essel World

Persons: Who else other than the one


and only NaMo?

Places: The Khushboo Gujarat Ki


Campaign with Amitabh Bachchan
promoting Gujarat Tourism

Properties: The Classifieds information,


i.e., real estate, stocks and bonds

Organizations: Teach for India, Bill and


Melinda Gates Foundation

Ideas: Aishwarya Rai promoting the


voluntary eye donation campaign,
Amitabh Bachchan promtoting the 2
boond zindagi ki polio campaign

Information: Oxford Dictionary

Gentleman 1(seller) seeks or intends to seek a response from


Gentleman 2(customer).
Marketers assessment of demand leads to the following 8
possible states
1. -ve demand: Gentleman 2 dislikes the product and may
even pay to avoid purchasing it from Gentleman 1
2. Non-existent demand: Gentleman 2 is completely
unaware of what gentleman 1 is selling
3. Latent demand: Gentleman 1s products are just not good
enough to satisfy gentleman 2s needs
4. Declining demand: With time, gentleman 2 reduces the
frequency of purchase of gentleman 1s products
5. Irregular demand: Gentleman 2s purchase vary on a
seasonal, monthly, weekly, daily or even an hourly basis
6. Full demand: Gentleman 2 will purchase everything that
Gentleman 1 sells
7. Overfull demand: Gentlemen 3, 4 and 5 also want to
purchase from Gentleman 1 now
8. Unwholesome demand: Even though gentleman 1s
product is harmful for the society, gentleman 2 purchases it
nevertheless.

The aim of marketing is to divide, divide and divide even


further until we find the right set of products for the right set
of customers. Segmentation is the process of profiling
diverse buyer groups on the basis of some geographic,
demographic, psychographic or behavioural metric. For
instance, McDonalds segments potential customers, among
other things, on the basis of age, broadly into children and
adults. After segmentation, Target segment(s) are decided.
For each identified target segment, the firm develops an
offering. McDonalds offers different meals for the children
and adult segments. Positioning is how the above offering is
fixated in the minds of the target buyers. A kid coming to
McDonalds should see it as a fun place to be with the
yummy fast-food and the all the goodies that come along
with it. An adult should see McDonalds as a place where
you get decent quality fast-food at a reasonable cost
delivered in miniscule time.
Apart from STP, there are 3 more important definitions
which you should know. This is the famous Needs, Wants
and Demands triad. A need is a basic human desire. Food,
Shelter and Clothing is a need. A specific need is called a
want. So, a desire to gulp down a bottle of Black Dog, wear
Armani and spending a weekend at the Taj in Colaba are all
wants. A Demand is a want constrained by the depth of your
pockets. So, instead of the aforesaid, your demands are rather
Seagrams, pair of Levis and coffee at Leopold.

Do all market the same way? Of course not!


We dare say, the marketing philosophy has multiple
thought processes. Which is the best thought process?
The first is the Production Concept. This concept
holds that customers prefer products that are
inexpensive and widely available. Gurgaon based
Micromax which sells the second most number of
handsets in India used this philosophy to beat the
premium brands. The Product Concept, stresses the
fact that customers prefer products offering the best
quality, performance or other innovative features.
Luxury car brands Porsche and Laborghini epitomize
this school of thought. According to the Selling
Concept, customers, if left alone would not buy an
organizations products. Did you enroll for the First
Citizen program of Shoppers Stop without the cashier
asking you to?
Finally, we have the Marketing Concept. A stark
contrast to the Selling Concept, the idea behind this
concept is to find the right products for your customers
rather than finding the right customers for your
product. Yum Brands Pizza Hut lets you choose the
crust, the key ingredients and finally the toppings.

Most of the discussions here have been


borrowed from Marketing Management , A
South Asian Perspective (Pearson) by Philip
Kotler, Kevin Lane Keller, Abraham Koshy
and Milthileshwar Jha. It is better known as
the Bible of marketing.
In all likelihood, you would not need to refer
any other text. However, in case you need a
second opinion, you may refer to the
Etzel, Bruce, Stanton, Pandit: Marketing
(TMH)
Perrault, Cannon, McCarthy: Basic
Marketing (TMH)
Ramaswamy, Namakumari: Marketing
Manage-ment: Global Perspective Indian
Context (Macmillan)
Saxena: Marketing Management (TMH)