Marketing Basics

BASICS OF MARKETING
 What is Marketing?

 Process of meeting needs/demands

 Needs – Essentials – Generally not taxed
 Demands – Wants, Luxuries, usually taxed

 Market – All that do or could buy a product –

customer must have -
 Ability
 Authority
 Willingness
 Marketing Process

 Mission Statement
 Why are we in business? Sets the tone.
 Organizational Objectives
 What do we want to achieve?

 Marketing Objectives
 What can marketing

achieve to help Org. goal?

Mission Statement
 Marketing Plan

 Situation Analysis
 BCG matrix

 SWOT analysis

 Balanced Scorecard

 Business Canvas

 Develop Goals for each SBU

 Strategies
 Segmentation – Demographics, Usage

 Targeting – Undifferentiated, Differentiated

 Positioning – Manage perception – Toyota, Lexus

 Marketing Mix (4 Ps)

 CRM – Customer Relationship Management

 CLV – Customer Lifetime Value
 Product Types

 Convenience Product
 Little or no shopping around, inexpensive – eg. Soap
 Shopping Product
 Lot of shopping for deals, expensive – eg. house, car
 Specialty Product
 Loyalty, not easily found – eg. South Indian Restaurant
 Product Life Cycle

 Introduction
 Growth
 Maturity
 Decline
 Price

 Skim
 Innovator can charge high price, skim profits
 Penetration
 Low price to penetrate market dominated by
others
 Competitive
 Match competition in a mature, highly
competitive market
 Cost-based /Target-profit
 Based on cost plus a percentage
 Others – geographical, segmented
(eg. Airline prices)

 Price Elasticity
 Elastic products – non-essential, cheap –
demand sensitive to price
 Inelastic products – essential – water, gas, etc.
– demand relatively stable
 Place (distribution)

 Physical Distribution (Ops. Mgt.)

 Channels
 Direct – producer sells to customers
 Indirect – producer to wholesalers to retailers to
customers
 Promotion

 Goals
 Increase demand

 Stabilize Sales

 Provide Information
 Differentiate
 Promotion Strategies

 Advertising
 Trade Sales
 Public Relations
 Direct Marketing
 Sponsorship

Source:
http://www.teleread.com/publishing/b
ook-promotion-what-works-what-
doesnt/