Presentation 18496 Content Document 20240408013917PM

Center for Executive Education
Course Code: 18EPG103
Term 01-Marketing Management

Prof. Ramesh Nagasamudram
[email protected]
+91 90 19 65 95 56
Center for Executive Education - 2020

I have used various sources and data to prepare and present the course material. While
it would be VIRTUALLY impossible to state each of these sources, I hereby
acknowledge and thank all of them for making these information available in the
open source.
declaration The rights remain with them and I have used these only for the purpose of teaching in
my courses.
N.Ramesh
@nramesh101

YOUR COURSE - MARKETING
MANAGEMENT
18 HOURS – 6 SESSIONS - 2 ASSIGNMENTS - 9 SELF TESTS + OFF CLASSROOM ACTIVITY
5 marks in your second assignment would be given based on marks scored through in class tests

1. MAINTAIN ZOOM / CLASSROOM ETIQUETTE
2. You have chosen to join this course on your own will. You have paid money; it is in
your interest to learn, understand and use the learnings in your career.
3. If you consider this class similar to those you attended in your college days, you are
mistaken. We will NOT hand hold you or remind or scold you for not paying attention
or for not submitting your assignments and activities.
4. Completing assignments and submitting them on LMS on time is a must.
Be informed 5. You are advised to go out and answer your phone be it a call or text message. While in
class you are expected to be attentive.
6. There are no prescribed books (only recommended books), no fixed syllabus (only
course outlines).
7. This is a management course, we intend and hope to create better managers who can be
the next leaders in their industries.
8. I am here to teach. You are here to learn. Let that equation be clear and understood.
Prof. Ramesh Nagasamudram
WA and Phone: +91 90 1965 9556
X: @nramesh101

INTRODUCTION - PROFESSOR
● Ramesh Nagasamudram
○ email: [email protected]
○ WhatsApp / Phone: +919019659556
○ X: @nramesh101
● Presently Co Founder and Vice President - Engineering @ ANIARA SPACECOM -BLR/ USA
● A Satellite & Satellite Service Company with Global interests, partners and customers
● Career roles RF & Microwave Engineer, Program Manager, Technical Head, Director Engineering, VP Sales and Marketing – Global
● Been on both sides of the discussion table as
○ User / installer / technician
○ Qualifier / Advisor
○ Implementer
○ Supplier / Seller / Buyer
○ Product Development
● Products / Services valued from a few cents to over $100M
● Teaching MBA students since 10 years
● Voracious reader - read anything that I lay my hands on, of late reading content that furthers / facilitates my teaching.

Your Course Details
REFERENCE
BOOK
MARKETING
PHILIP KOTLER
any edition

Course Content - Marketing Management EPG 103
● Structure / Framework Principles of Marketing or Marketing by Philip Kotler

● Advances in the subject as recognized by premier institutions like Harvard, Stanford and other identified
gold standards in teaching Marketing Management
● Case studies / Assignments drawn from HBR, Ivy League colleges, IIMs and other recognized sources.
Additionally from current or near current evolving global case studies
● While the framework is fixed, the contents within are fluid, dynamic considering present trends in the
subject and new benchmarks for analysis
● FOR THIS BATCH - I HAVE ADDED MORE DETAILS IN CERTAIN TOPICS
● Being a management course, emphasis is in giving directions and not on hand holding
● You are encouraged to think, visualize and be creative within the boundaries of realistic / practical
deliverables
● Working as a team and developing leadership skills (in that order) is encouraged
● The course is challenging and demands your time and attention.
● You are encouraged to ask, interact and question. However, I am here to teach, you are here to learn - let
our roles be clear and well understood.
● End course evaluation - a better manager, a better individual growing well in the organization using the
skill sets and knowledge gained through this course
PHILIP KOTLER
● Philip Kotler (born 27 May 1931) is an American marketing author, consultant, and professor; the S.
C. Johnson & Son Distinguished Professor of International Marketing at the Kellogg School of
Management at Northwestern University (1962-2018). He gave the definition of marketing mix. He
is the author of over 80 books, including Marketing Management, Principles of Marketing,
Kotler on Marketing, Marketing Insights from A to Z, Marketing 4.0, Marketing Places, Marketing
of Nations, Chaotics, Market Your Way to Growth, Winning Global Markets, Strategic Marketing
for Health Care Organizations, Social Marketing, Social Media Marketing, My Adventures in
Marketing, Up and Out of Poverty, and Winning at Innovation. Kotler describes strategic marketing
as serving as "the link between society's needs and its pattern of industrial response."[1]
● Kotler helped create the field of social marketing that focuses on helping individuals and groups
modify their behaviors toward healthier and safer living styles. He also created the concept of
"demarketing" to aid in the task of reducing the level of demand. He also developed the concepts of
"prosumers," "atmospherics," and "societal marketing." He is regarded as, "The Father of Modern
Marketing" by many scholars.
MARKET - MARKETING - MARKETING MANAGEMENT
● SOURCE WIKIPEDIA
Your Obligation
● Come prepared for the class. Expect to be given activities both individual and group.
● Make sure you have a good internet access (physically while in class or online). Best get your laptop
along with you.
● Complete Google Forms within deadline

● Complete Assignments within deadline and upload to the LMS
○ Group Assignments and videos
○ Individual Assignments
● Read PPTs of the previous class. You will be quizzed at the beginning of each class

INTRODUCTION STUDENT
CHALLENGES
● FOR PROFESSOR
○ How to get over 50 students to introduce themselves, briefly !!
● FOR STUDENT
○ How to get yourself noticed and heard in a crowd
○ How to say the right things, swiftly, briefly and in an interesting way
● Thankfully, these concepts give us an idea or direction

○ Elevator pitch
○ Twitter messaging

ELEVATOR PITCH AND TWITTER CHARACTER
LIMITATION
● Elevator pitch is an industry term used to describe a brief speech that outlines an idea for a product,
service, project or even introducing oneself.
● The name comes from the notion that the speech should be delivered in the short time period of an
elevator ride. You have around 30 seconds attention of an individual to convey your message.
● Twitter is about brevity. It's what makes it such a great way of conveying your thoughts with the best use
of words limiting the size of the message to 140 (now 280 characters).
● “DESCRIBE YOURSELF IN A TWEET” limit yourself to 200 characters. The tweet should describe
more about you and the two sides of your self - work and play.

DEF/NOTES
INTRODUCTION - PROFESSOR
● Enjoyed rollercoaster ride Engineering to

Entrepreneurship. Sixty now - none listen to me at
home, so lecture MBA students. South Bangalorean;
choosy on the coffee I drink, support CSK over RCB.
●
30 words - 193 characters
● X: @nramesh101 or look for ramesh nagasamudram

INTRODUCTION - YOU
● Describe yourself in 200 chars, show your character, sense of subtle humour, and still say everything
about you—all within 200 chars.
○ Complete the Google Form in 15 mins

Course THIS CLASS
● Introduction to the subject
Marketing is core to any business. Through its interface with the customer it acts as a source of ○ Bit of History
intelligence about customer needs, competitors, and the general environment. Brings revenue to the
company ○ Clearing notions
● Role of Marketing in an organization

First half of the course explores and explains the principles, strategies, and practices involved in
managing marketing activities within an organization. The course introduces student to marketing ● Nuances of Marketing
concepts, strategies, and practices.
● Evolution of Marketing and marketing
practices
Second half of the course dwells on key marketing aspects in B2B transactions. Understanding of how
professionally run organizations go through their procurement processes. ● Opening minds to the vastness and
importance of Marketing in the lives of
The course focuses on developing skills and knowledge necessary to effectively manage marketing individuals, companies and the society
activities within an organization. It covers various aspects of marketing, including market analysis,
consumer behavior, product development, pricing, promotion, and distribution.
Course Objectives:
1.Explain the fundamental role of marketing in an organization and its contribution to the company’s
profitability and sustenance in a competitive environment.
2.Explore the strategic elements of marketing and their application in various business contexts.
3.Learn the tools necessary to implement marketing strategy and improve performance.
4.Develop critical thinking and problem-solving skills in marketing decision-making.
5.Apply marketing concepts to real-world scenarios through case studies and projects.

DISCUSSION:
DIFFERENCE BETWEEN SALES AND MARKETING

CEOs / Managers must have the art of storytelling
In the realm of leadership, the power of storytelling is often undervalued. For CEOs and business leaders, mastering the art of
storytelling can be a transformative tool, enhancing communication, inspiring teams, and shaping corporate culture. This article
delves into the significance of creative storytelling in leadership, illustrates it with real-life examples, and provides practical advice
on developing this skill.
The Power of Storytelling in Leadership
Storytelling is more than a communication tool- it's a way to convey vision, values, and purpose, engaging employees on an
emotional level. When a leader tells a compelling story, it can motivate teams, foster a sense of belonging, and clarify complex
ideas.
Examples of Storytelling by Successful CEOs:
● Steve Jobs, Apple: Jobs was a master storyteller, often using narratives to instill a vision of innovation and excellence.
His product launches were storytelling masterpieces, turning technical presentations into captivating stories.
● Howard Schultz, Starbucks: Schultz’s stories about Starbucks' origins and his vision for a 'third place' between work
and home reshaped the coffee experience, creating a strong emotional tie with customers and employees.
● Indra Nooyi, PepsiCo: Nooyi often shared personal stories to connect with employees and customers, using these
narratives to highlight PepsiCo’s commitment to sustainability and health.
D Center for Executive Education - 2020

CEOs / Managers must have the art of storytelling
In the realm of leadership, the power of storytelling is often undervalued. For CEOs and business leaders, mastering the art of storytelling can be a
transformative tool, enhancing communication, inspiring teams, and shaping corporate culture. This article delves into the significance of creative
storytelling in leadership, illustrates it with real-life examples, and provides practical advice on developing this skill.
● Know Your Audience: Understand the values, needs, and aspirations of your team to craft stories that resonate.
● Be Authentic: Authentic stories build trust and credibility. Share real experiences and lessons learned.
● Create Emotional Connections: Use storytelling to tap into emotions, making your message more memorable and impactful.
● Keep It Simple and Relatable: A good story is easy to understand and relatable to your listeners’ experiences.
● Use Visuals and Metaphors: Enhance your stories with visual language and metaphors that make complex ideas more accessible and
engaging.
● Practice Makes Perfect: Like any skill, storytelling improves with practice. Seek opportunities to tell stories in different settings.
Training in Storytelling
● Read and Analyze Stories: Study great storytellers and a variety of storytelling styles.
● Observe and Reflect: Watch and analyze how other leaders use stories effectively. Reflect on what works and why.
● Participate in Workshops or Have a Mentor: Attend storytelling workshops, public speaking courses or take a mentor with whom to focus
on narrative techniques.
● Solicit Feedback: After delivering a story, ask for feedback to understand its impact and how it could be improved.
For CEOs, the ability to tell a compelling story is not just about effective communication- it’s a strategic tool that can inspire, motivate, and bring real
change. It humanizes the leader, bridges gaps between the vision and the team, and fosters a culture of shared values and goals. By honing your storytelling
skills as a leader, you can significantly enhance your impact
Centerand
forinfluence,
Executive guiding organization
Education - 2020 toward greater success.
Maslow’s Pyramid - Definitions
? Our most basic need is for physical survival, and this will be the first thing that motivates our behavior. Once that level is fulfilled the next
level up is what motivates us, and so on.
? 1. Physiological needs - these are biological requirements for human survival, e.g. air, food, drink, shelter, clothing, warmth, sex, sleep.
? If these needs are not satisfied the human body cannot function optimally. Maslow considered physiological needs the most important as all
the other needs become secondary until these needs are met.
? 2. Safety needs - once an individual’s physiological needs are satisfied, the needs for security and safety become salient. People want to
experience order, predictability and control in their lives. These needs can be fulfilled by the family and society (e.g. police, schools, business
and medical care).
? For example, emotional security, financial security (e.g. employment, social welfare), law and order, freedom from fear, social stability,
property, health and wellbeing (e.g. safety against accidents and injury).
? 3. Love and belongingness needs - after physiological and safety needs have been fulfilled, the third level of human needs is social and
involves feelings of belongingness. Belongingness, refers to a human emotional need for interpersonal relationships, affiliating,
connectedness, and being part of a group. Examples of belongingness needs include friendship, intimacy, trust, and acceptance, receiving and
giving affection, and love.
? 4. Esteem needs are the fourth level in Maslow’s hierarchy and include self-worth, accomplishment and respect. Maslow classified esteem
needs into two categories: (i) esteem for oneself (dignity, achievement, mastery, independence) and (ii) the desire for reputation or respect
from others (e.g., status, prestige).
? Maslow indicated that the need for respect or reputation is most important for children and adolescents and precedes real self-esteem or
dignity.
? 5. Self-actualization needs are the highest level in Maslow's hierarchy, and refer to the realization of a person's potential, self-fulfillment,
seeking personal growth and peak experiences. Maslow (1943) describes this level as the desire to accomplish everything that one can, to
become the most that one can be.
DEF/NOTES
Man’s basic needs
Or shall we say needs of Homo Sapiens (Latin : Wise Men)
These are NEEDS and

have remained same all
along human history
? But what has changed are WANTS and DESIRES associated with NEEDS

NEEDS, WANTS AND DEMANDS
? Needs wants and demands are a part of basic marketing principles. Though they are 3 simple worlds, they hold
a very complex meaning behind them along with a huge differentiation factor. In fact, A product can be
differentiated on the basis of whether it satisfies a customers needs, wants or demands.
? Human needs are the basic requirements and include food, clothing and shelter. Without these humans cannot
survive. An extended part of needs today has become education and healthcare. Generally, the products which
fall under the needs category of products do not require a push. Instead the customer buys it themselves. But in
todays tough and competitive world, so many brands have come up with the same offering satisfying the needs
of the customer, that even the “needs category product” has to be pushed in the customers mind.
? Wants are a step ahead of needs and are largely dependent on the needs of humans themselves. For example,
you need to take a bath. But i am sure you take baths with the best soaps. Thus Wants are not mandatory part
of life. You DONT need a good smelling soap. But you will definitely use it because it is your want.
? You might want a BMW or a Mercedes for a car. You might want to go for a cruise. But can you actually buy a
BMW or go on a cruise? You can provided you have the ability to buy a BMW or go on a cruise. Thus a step
ahead of wants is demands.
? When an individual wants something which is premium, but he also has the ability to buy it, then these wants
are converted to demands. The basic difference between wants and demands is desire. A customer may desire
something but he may not be able to fulfill his desire.
DEF/NOTES
Wants and Needs
understanding these wants and needs is MARKETING

With this foundation
? Let us dive deeper into the subject

? Let us first set a baseline to understand the two terms sales and marketing

BUSINESS
MANUFACTURING, SALES AND MARKETING -
HISTORICAL GLANCE
RUN THROUGH THE PAGES OF BUSINESS HISTORY

EARLY DAYS - DAWN OF CIVILIZATION
🠶 KINGS AND TAXES
? HUNTERS AND 🠶 CAPTURE OF WEALTH ? CREATION OF

GATHERERS 🠶 I WIN YOU LOSE - WARS CREDIT SYSTEM
? SURVIVAL OF THE 🠶 SIZE OF PIE IS LIMITED
FITTEST
THE SYSTEM OF CREDIT
? The definition of credit is the ability to borrow / lend money with the
promise that you'll repay (you will get it back) in the future, often with
interest.
? Credit works well when both borrower and lender believe tomorrow is
brighter than today
? Credit allowed businesses to expand.
? King didn’t need to increase the % of taxes, as the produce increases
earnings increase (or income to the treasury increased)
? Credit livens the economy, drives business, encourages innovation,
expeditions, trade and employment
? CREATED THE CONCEPT OF WIN WIN

DEF/NOTES
EXPLORATIONS AND COLONIZATION
? Kings funded enterprise. Enterprises

paid liberal taxes
? Kings encouraged larger ships to be
built
? Exploration and discovery of new lands
and colonization of countries
? Plundering of wealth of other countries

INDUSTRIAL REVOLUTION AND MASS
MANUFACTURE
? The Industrial Revolution transformed 🠶 Rich and Poor nation divide.

economies that had been based on
🠶 Haves and Have nots
agriculture and handicrafts into
economies based on large-scale industry, 🠶 Colonized countries became
mechanized manufacturing, and the
🠶 the resource of raw material
factory system. New machines, new
power sources, and new ways of 🠶 the user of the finished goods
organizing work made existing 🠶 Seller was the King
industries more productive and efficient.
🠶 Buyer had no choice

END OF WORLD WAR
NEW MARKETS, NEW COMPETITION
? END OF WORLD WAR 2

? END OF COLONIZATION
? DEVELOPING COUNTRIES
? RICH – POOR DIVIDE
DIMINISHING
? SELLER HAD COMPETITION
? BUYER HAD CHOICE

WAYS WE DO BUSINESS HAS CHANGED
? GLOBALIZED WORLD
? BUYER NOT ONLY HAS CHOICE, HE IS
SPOILT FOR CHOICE.
? BUYER IS EDUCATED
🠶 SELLERS MARKET ? SELLER NEEDS TO PLEASE THE BUYER 🠶 BUYERS MARKET

? SELLER NEEDS TO LISTEN TO THE
🠶 PRODUCT SCARCITY MARKET
🠶 PRODUCT IN PLENTY
🠶 LIMITED SOURCES ? REACT TO MARKET NEEDS 🠶 UNLIMITED OPTIONS
🠶 SUPPLY - DEMAND MIS MATCH ? ACT AS MARKET DESIRES 🠶 SUPPLY - DEMAND MIS MATCH
? PERFORM MARKETING
🠶 SELLER IS THE KING 🠶 BUYER IS THE KING
DISCUSSION:
DIFFERENCE BETWEEN SALES AND MARKETING

DIFFERENCE BETWEEN SALES AND
?
MARKETING
SELLING ? MARKETING
? PRIORITY ON THE PRODUCT ? PRIORITY ON THE CUSTOMER WANTS AND NEEDS
? COMPANY MANUFACTURES FIRST AND THEN DECIDES HOW TO SELL OR JUST SELL ? FIRST THE CUSTOMER NED AND WANTS AND THEN NOW TO
SATISFY IT
? USE OF EXISTING TECHNLOGIES AND REDUCING COSTS
? PRIORITY ON INNOVATION
? COST DETERMINES FINAL PRICES
? CONSUMERS DETERMINE PRICE, PRICE DETERMINES COST
? VIEW BUSINESS AS A GOODS PRODUCNG PROCESS
? VIEW BUSINESS AS A CONSUMER SATISFYING PROCESS

DEF/NOTES
Marketing (as with Life) is a Closed Loop
If you don’t listen or pay attention to the feedback you are

destined to fail

MARKETING DEFINITIONS OLD DEFINITION:
Marketing management (or management of marketing) is the
process of setting marketing goals for an organization (considering
internal resources and market opportunities), the planning and
● the science and art of exploring, creating, and delivering value to execution of activities to meet these goals, and measuring
satisfy the needs of a target market at a profit.” progress toward their achievement.
● setting marketing goals
● Marketing is the process of getting potential clients or customers
● considering internal resources and market opportunities
interested in your products and services. The keyword in this
● planning and execution to meet these goals and objectives
definition is "process." Marketing involves researching, promoting,
● measuring progress through their achievement.
selling, and distributing your products or services
● Philip Kotler has evolved his definition of marketing. In 1980, he
defined marketing as "satisfying needs and wants through an
exchange process", and in 2018 defined it as "the process by which
companies engage customers, build strong customer relationships,
and create customer value in order to capture value from customers ● science and art
in return". ● delivering value
● customers interested in your products
● Marketing is currently defined by the American Marketing ● satisfying needs and wants
Association (AMA) as "the activity, set of institutions, and ● customer relationships.
processes for creating, communicating, delivering, and exchanging
offerings that have value for customers, clients, partners, and
society at large".

DEF/NOTES
DISCUSSIONS
? GIVE SOME EXAMPLES OF VARIOUS NEEDS / WANTS AND DEMANDS

COMPANIES THAT ADAPTED
(FAILED TO ADAPT) TO THE MARKET
NEEDS & WANTS

Product is the Same, customer connect is the Tadka

NETFLIX and Reed Hastings
customer centric

Same Product, Promotion is different
Change the rules of the game
Pay for Coffee Pay for Desk

Desk is free Coffee is free
Pay for Voice Pay for Data

Data is Free Voice is Free
Tata DoCoMo Started it all
• Bill by the min
• Bill by usage
Same Product, Promotion is the driver
Wives Fly Free
Change the rules of the game

Same product, but different user
Bottled vs sachets
Multiple use vs one time
Rich vs poor
Rs. 74 vs Rs 01

Product Fine, Pricing is brilliant, but………
? Tata Nano
? Innovative product, truly addresses the nation’s transport issue,
but…
? Failed,
? since it was projected as a cheap car, car for the poor, car for the
middle class
? Car for those who couldn’t afford one
? It should have been a social responsibility car,
? Private small family car
? Nation Building car
? My other car is a Nano
MY OTHER CAR IS A
NANO

Product Fine, Pricing is Perfect, but credibility………
? General Motors
? Leader worldwide. Trend setter
? Failed in India,
? Maruti 5 CEOs in 35 years, while GM 9 CEOs in 21 years
? Too many launches and withdrawals demotivate customers.
Customers are your best salesmen
? Maruti Alto and Swift there for decades
? Weak Local Management
? Feedback not taken seriously

Product was good, pricing is good, credibility is Great, but are
your listening
? Nokia
? Leader for years
? Every model a running success
? Ran an undisputed race
? Refused to listen to the market
? Market wanted dual SIM
? Nokia – no you don’t need
? Market Symbian is not current, Android is advanced
? No Symbian is best
? Competition walks in
? Nokia is out
? If you don’t listen to the market, the market won’t care
? BLACKBERRY ….. Center for Executive Education - 2020

Can you name a few who didn’t make it
Products that failed
Godrej Ganga

DISCUSSIONS
? COMPANIES WHICH FAILED

MARKETING AND IT IMPACT

Price to Consumption
? Price falls consumption rises
PRIC
E
CONSUMPTION
PRICE TO DEMAND CURVE
? What Is the Demand Curve?

? The demand curve is a graphical representation of the relationship between the price of a good or service and the quantity
demanded for a given period of time. In a typical representation, the price will appear on the left vertical axis, the quantity
demanded on the horizontal axis.
? Understanding the Demand Curve
? The demand curve will move downward from the left to the right, which expresses the law of demand—as the price of a
given commodity increases, the quantity demanded decreases, all else being equal.
? Note that this formulation implies that price is the independent variable, and quantity the dependent variable. In most
disciplines, the independent variable appears on the horizontal or x-axis, but economics is an exception to this rule.
? Demand Elasticity
? The degree to which rising price translates into falling demand is called demand elasticity or price elasticity of demand. If a
50% rise in corn prices causes the quantity of corn demanded to fall by 50%, the demand elasticity of corn is 1. If a 50%
rise in corn prices only decreases the quantity demanded by 10%, the demand elasticity is 0.2. The demand curve is
shallower (closer to horizontal) for products with more elastic demand, and steeper (closer to vertical) for products with
less elastic demand.

DEF/NOTES
But, exceptions to rule
? Price falls consumption rises

? Price falls consumption falls
? Price rises consumption rises
PRIC
E
DISCUSSION
S
CONSUMPTION
Giffen Goods
? What is a Giffen Good?

? A Giffen good, a concept commonly used in economics, refers to a good that people consume more of as
the price rises. Therefore, a Giffen good shows an upward-sloping demand curve and violates the
fundamental law of demand.
? It is important to note that all Giffen goods are inferior goods, but not all inferior goods are Giffen goods.

DEF/NOTES
Giffen Good Example
? Consider a poor household with a maximum monthly expenditure on food at $400 and a minimum
consumption of grains at 50 kg. The household consumes two goods to meet their grain consumption
demand: rice and wheat.
? Rice is considered an inferior good, is cheaper than its substitutes, and represents a large portion of the
household’s spending.
? Wheat is considered a normal good.

DEF/NOTES
Veblen Goods
? Veblen Goods are a class of goods that do not strictly follow the law of demand, which states that there exists an inverse
relationship between the price of a good or service and the quantity demanded of that good or service. Veblen goods
violate the law of demand after prices have risen above a certain level
? The Veblen Effect
? The Veblen Effect is the positive impact of the price of a commodity on the quantity demanded of that commodity.
? 1. Perception of quality
? In Veblen’s analysis of conspicuous consumption, the economist noted that for certain luxury goods and services, a higher
price was often associated with the perception of higher quality. Therefore, a price increase was seen as evidence of the
producer improving quality.
? For example, the demand for a designer handbag rises with an increase in its price. The price increase is viewed by
consumers as evidence that the producer of the designer handbag has improved the quality of the handbag.
? 2. Positional goods
? Veblen goods are often positional goods. The quantity demanded of a positional good depends on how the good is
distributed in society. Veblen goods often exhibit a negative positional effect, i.e., the quantity demanded of a Veblen good
increases with a reduction in the distribution of the good. It occurs because the utility gained by a consumer from holding
such a good arises purely from the fact that few other consumers hold it.
? For example, the utility gained by a consumer from owning a diamond-encrusted handbag might arise primarily from the
fact that few other people in society can afford to own such an object. Thus, for this consumer, the diamond-encrusted
handbag acts as a positional good. Center for Executive Education - 2020
DEF/NOTES
Price to Consumption
🠶 Non linear curve
PRIC
E
The price to consumption is non linear due to the presence of a

third element -MARKETING
CONSUMPTION
ONE ADDITIONAL MARKETING DEFINITION
? the science and art of exploring, creating, and delivering value to satisfy the needs of a target market at a
profit.”
? Marketing is the process of getting potential clients or customers interested in your products and services.
The keyword in this definition is "process." Marketing involves researching, promoting, selling, and
distributing your products or services
? Philip Kotler has evolved his definition of marketing. In 1980, he defined marketing as "satisfying needs
and wants through an exchange process", and in 2018 defined it as "the process by which companies
engage customers, build strong customer relationships, and create customer value in order to capture
value from customers in return".
? Marketing is currently defined by the American Marketing Association (AMA) as "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".
? The price to consumption is non linear due to the presence of a third element -MARKETING

DEF/NOTES
DISCUSSIONS
? WHY DISLIKE MARKETING

? WHAT’S THE GOOD IMPACT OF MARKETING

Dislike Marketing ?
? Make you spend more than you can afford

? Brand differentiation where it does not exist
? Don’t care for the earth or safety
? Promote materialistic lifestyle
? Illegal who cares you want we provide
? Social discriminators – IPL seating

DEF/NOTES
Like Marketing !
? Build / upgrade lifestyles

? Promote business and trade
? Generate jobs
? Awareness
? Social Marketing – obesity and diabetes
? Revive – graying audience

DEF/NOTES
TYPES OF MARKETING
? CITY, STATE OR NATION

? PERSON
? EVENT
? POLITICAL
? SOCIAL
? PRODUCT AND SERVICES

Give a few examples
DISCUSSIONS
? END OF CLASS DISCUSSIONS

LETS DIVE DEEPER

COOKING - RECIPE FOR BIRYANI / MASALA
DOSA
? INGREDIENTS
? PROPORTION
? DRESSING
? PRESENTATION
? AMBIENCE
? AFTER EFFECT
? WHY EAT AT HOME ? WHY EAT AT HOTEL

MARKETING MIX
? Marketing mix includes elements of what a company offers to its customers. The
term was first coined to eliminate any barriers that may come in the way of
successfully adopting the offering.
? But why is marketing mix important? Let us now understand the 4Ps of marketing
with examples.
? Compare an effective marketing mix to a recipe of your favourite dish. The

description begins with enlisting all necessary ingredients needed for preparation.
But it doesn’t stop here.
? The recipe goes on to describe steps to blend, mix and cook these ingredients in the
right proportion, at the right time, and under specific conditions to achieve the
desired outcome of a finger-licking meal.
? Just like ingredients for cooking the dish, a desirable market offering must include
each of the 4Ps: Product, Place, Price, and Promotion in a well-thought out mix.
These 4Ps of marketing mix will decide the direction in which your marketing
campaign will go to give you an outcome. Whether desirable or not will depend
upon how much of what ‘ingredient’ (in this case, element of marketing mix) you
DEFINITION & NOTES
add to the preparation.
7 Target Market Strategy
Develop a marketing mix that will

produce satisfying exchanges with
target markets
Product
Place
Promotion
Price

Chapter 2 Marketing 7e Lamb Hair McDaniel 68
©2004 South-Western/Thomson Learning
8 The Marketing Mix
A unique blend of product,

distribution, promotion, and
pricing strategies designed to
produce mutually satisfying
exchanges with a target
market.

8 Marketing Mix: The “Four Ps”
Price
Promotion
Place
Product

PRODUCT
⮚ We begin with looking at the fundamental 4Ps of marketing – Product, Place, Price, and Promotion. Out
of these, Product in marketing mix is, probably, the most crucial component. It originates directly from
your customer through an unmet need that they have.
⮚ Product in marketing mix is the most fundamental topic we all learn and 4Ps of marketing is one of the
first frameworks taught in the vast domain. In fact, the 4Ps and then the 7Ps of marketing, which lay the
foundation for the marketing mix, must be thoroughly comprehensive to us, whether to sell a product or
to contribute to other functions related to launching a product to market

DEFINITION & NOTES
8 Product
Product

PRODUCT
⮚ Think of Product in marketing mix as an umbrella term that describes anything a business wants to sell to their
customer (an end user or another business). Product is the entity that satisfies a customer’s need and want.
⮚ Products can be any of the following entities :
⮚ Goods
⮚ Services - IT / SOFTWARE / HR / ACCOUNTS / TEACHING / CONSULTING /
⮚ Events and Experiences
⮚ Persons
⮚ Places and Properties
⮚ Organizations
⮚ Information
⮚ Idea
⮚ Everyday, you make choices in using various products based on their unique properties, on factors like product
variety, quality, design, features, associated brand name, packaging, sizes, additional services, warranties and returns.

DEFINITION & NOTES
Service Marketing Triangle
? As a service business you must market both to your employees. So they
understand the focus of your business and your customers, so they do more
business with you in the future.
? COMPANY – EMPLOYEES - CUSTOMERS
? Internal Marketing – External Marketing - Interactive Marketing

DEFINITION & NOTES
Service Marketing Triangle 1. Company: The company or firm is the
management which covers full-time marketers
and sales personnel who promises or commits
to the customers. Also, they have to keep the
promises by way of internal marketing.
2. Employees: They are the ones who deal with

the customers directly. It won’t be wrong to say
that they are part-time marketers. Further, they
carry out interactive marketing.
3. Customer: They are the ones to whom the

company delivers services and are exposed to
external marketing.

DEFINITION & NOTES
Service Marketing Triangle
Company to Customers: Customers must be aware of the company’s service
strategy. They should have an idea of the firm’s commitment towards excellence.
Company to Employees: Employees must be aware of the service strategy of the

firm. It helps them understand the need for marketing the service.
Company to Systems: Consistency of the service strategy and system designed to

form routine business activities creates the third relationship.
Customer to System: Effect of the organizational system on customer service

experience.
Employee to System: Significance of organizational system and employee efforts.
Employees to Customer: It denotes the relationship between the customer and the
service provider.

DEFINITION & NOTES
PRODUCT
? How can products be categorized?

? At this stage, you might feel that the ‘Product’
in marketing mix is a very abstract concept.
Can we group products into categories to
comprehend better?
? So products are often identified in 3 types –

tangible products, intangible products and
services.

DEFINITION & NOTES
PRODUCT MIX
⮚ Often, we visit stores offering a variety of products in the same location, whether physical (the supermarket) or virtual (like Amazon). The
portfolio of products available are called the product mix, and available products can be grouped based on similar attributes or benefits.
⮚ Each t-shirt in an apparel store is a product unit (a unit of product), and is part of a product line, call it “T-Shirts”. So, within this section,
you choose a t-shirt of your choice based on its unique variation, features, or price points, which are differentiating factors to you while
making a choice.
⮚ This brings us to an interesting concept of Product Levels, based on different levels of needs customers have, and how they can be
satisfied based on the 5 levels of a product being offered.
⮚ The Five Product Levels will help you answer questions like what benefits do you want to offer through your product, how will you
differentiate your services from competitors, what is your product’s Unique Selling Proposition, and how to deliver superior value
through the offering?
⮚ We know that every product is launched in market to meet customer needs. A need is the lack of a basic human requirement. A want (a
sub-set of need) is a requirement of a specific object that can satisfy the basic need. A demand is a set of wants which, along with the
desire and ability to pay, can satisfy the requirement.

DEFINITION & NOTES
Levels of a Product

Levels of a Product
1. Bundle of benefits that are
delivered by the product purchased
by the consumer
2. Physical product –shape, color,
brand
3. Elements that the consumer
expects the product to possess
4. Elements of a product that exceed
consumer expectations. Here’s
where the competition happens
5. Possible future augmentations

DEFINITION & NOTES
FIVE PRODUCT LEVELS
⮚ What convinces you to purchase a product? You perceive a value that the product will offer if you buy
it. After you buy, if the actual value delivered exceeds your expectations, you are satisfied, but if it falls
below your perceived value, you are dissatisfied. Let’s understand the model with an example:
⮚ Consider you are exhausted after a long day and want to energise yourself with a meal. Your
requirement of satisfying your hunger is a fundamental need. A café offering a meal might interest you.
The café offers a Core Benefit.
⮚ You receive the meal in a bowl, on a tray, with a spoon at your table to dine-in. You are satisfied and
begin eating, since the café met your needs of a Generic Product.
⮚ Considering the COVID time, you wonder whether the kitchen was hygienic, and the cutlery washed
with care. You are expecting additional features to be offered with the product (meal) which aren’t
needed to satisfy your core need. You’ve reached the stage of Expected Product.
⮚ Now suppose the restaurant you visited for dinner is actually a renowned café, which serves different
choice cuisines, along with an exceptional dining experience. The overall experience is unique and
appreciated by you among the available options in the neighbourhood. The services offered are an
Augmented Product.
⮚ Now suppose the café being talked about is Starbucks. Starbucks is globally known for its top-notch
customer experience. Through market analysis and technology, they offer services that continue to
surprise and delight you, and the expectation of superior ambience and improved service are constantly
exceeded through future product (and service) improvements. Starbucks successfully offers a Potential
Product, the highest level of a product in marketing mix.
⮚ Companies strive to deliver such superior value (that Starbucks offers) Center
by spending resources and
for Executive Education - 2020
money in Product Development based on market analysis and a cost estimate (to ensure profitability).
DEFINITION & NOTES
PRODUCT LIFE CYCLE
⮚ We have covered a lot of ground today, with many concepts clearing the air around Product in marketing mix. Before concluding our discussion about Product in 4Ps
of marketing, I want to briefly introduce you to a typical product lifecycle.
⮚ How the product performs in 4 stages – Introduction, Growth, Maturity, and Decline is the basis for product development and strategizing decisions. Stages are
identified based on the time series plot of product sales figures.
⮚ Suppose Starbucks identifies the need to launch a new product in their cold-coffee product category.
⮚ They will Introduce the product on an official launch, with slow growth. You might get to know about the product one fine day while browsing their menu, or while
viewing an advertisement. Very limited and gradual popularity among a specific section of the audience, generated by people choosing to try the new product.
⮚ The next stage, when you hear about the product through a friend who recommended you to try it, means you’re witnessing the Growth stage, with rapid and
exponential sales hike, and more audience coming in through word of mouth. Product is set to enter the list of mainstream offerings as we transition to the Maturity
phase.
⮚ Product gains strong foothold in market in the Maturity phase, with gradual slowdown in sales. It becomes widely available and is established as a strong competitor.
⮚ Finally, the cold-coffee no longer offers unique value to you as you begin to switch to other similar but better products or do not feel the need to have a cold-coffee.
This leads to downward spiral of sales in the Decline phase with only limited saturated features and outdated value-added services offered.
⮚ While being involved in new product development, you can now comprehend the importance of realistically mapping product journey, making safe predictions, and
re-designing the product if needed.

DEFINITION & NOTES
PRODUCT LIFE CYCLE
⮚ there are four stages in a product’s life cycle - introduction, growth, maturity, and decline – but before this a product needs to
go through design, research and development. Once a product is found to be feasible and potentially profitable it can be
produced, promoted and sent out to the market. It is at this point that the product life cycle begins.
⮚ The various stages of a product’s life cycle determine how it is marketed to consumers. Successfully introducing a product to
the market should see a rise in demand and popularity, pushing older products from the market. As the new product becomes
established, the marketing efforts lessen and the associated costs of marketing and production drop. As the product moves
from maturity to decline, so demand wanes and the product can be removed from the market, possibly to be replaced by a
newer alternative.
⮚ Managing the four stages of the life cycle can help increase profitability and maximise returns, while a failure to do so could
see a product fail to meet its potential and reduce its shelf life.
⮚ Writing in the Harvard Business Review in 1965, marketing professor Theodore Levitt declared that the innovator had the
most to lose as many new products fail at the introductory stage of the product life cycle. These failures are particularly
costly as they come after investment has already been made in research, development and production. Because of this, many
businesses avoid genuine innovation in favour of waiting for someone else to develop a successful product before cloning it.

DEFINITION & NOTES
PLC 1/2
⮚ 1. Market Introduction and Development
⮚ This product life cycle stage involves developing a market strategy, usually through an investment in advertising and marketing to make consumers aware
of the product and its benefits.
⮚ At this stage, sales tend to be slow as demand is created. This stage can take time to move through, depending on the complexity of the product, how new
and innovative it is, how it suits customer needs and whether there is any competition in the marketplace. A new product development that is suited to
customer needs is more likely to succeed, but there is plenty of evidence that products can fail at this point, meaning that stage two is never reached. For
this reason, many companies prefer to follow in the footsteps of an innovative pioneer, improving an existing product and releasing their own version.
⮚ 2. Market Growth
⮚ If a product successfully navigates through the market introduction it is ready to enter the growth stage of the life cycle. This should see growing demand
promote an increase in production and the product becoming more widely available.
⮚ The steady growth of the market introduction and development stage now turns into a sharp upturn as the product takes off. At this point competitors may
enter the market with their own versions of your product – either direct copies or with some improvements. Branding becomes important to maintain your
position in the marketplace as the consumer is given a choice to go elsewhere. Product pricing and availability in the marketplace become important
factors to continue driving sales in the face of increasing competition. At this point the life cycle moves to stage three; market maturity.

DEFINITION & NOTES
PLC 2/2
⮚ 3. Market Maturity
⮚ At this point a product is established in the marketplace and so the cost of producing and marketing the existing product will decline.
As the product life cycle reaches this mature stage there are the beginnings of market saturation. Many consumers will now have
bought the product and competitors will be established, meaning that branding, price and product differentiation becomes even more
important to maintain a market share. Retailers will not seek to promote your product as they may have done in stage one, but will
instead become stockists and order takers.
⮚ 4. Market Decline
⮚ Eventually, as competition continues to rise, with other companies seeking to emulate your success with additional product features or
lower prices, so the life cycle will go into decline. Decline can also be caused by new innovations that supersede your existing product,
such as horse-drawn carriages going out of fashion as the automobile took over.
⮚ Many companies will begin to move onto different ventures as market saturation means there is no longer any profit to be gained. Of
course, some companies will survive the decline and may continue to offer the product but production is likely to be on a smaller scale
and prices and profit margins may become depressed. Consumers may also turn away from a product in favour of a new alternative,
although this can be reversed in some instances with styles and fashions coming back into play to revive interest in an older product.

DEFINITION & NOTES
PRODUCT LIFE CYCLE - STRATEGY AND
MANAGEMENT
⮚ Having a properly managed product life cycle strategy can help extend the life cycle of your product in the market.
⮚ The strategy begins right at the market introduction stage with setting of pricing. Options include ‘price skimming,’ where the
initial price is set high and then lowered in order to ‘skim’ consumer groups as the market grows. Alternatively, you can opt for
price penetration, setting the price low to reach as much of the market as quickly as possible before increasing the price once
established.
⮚ Product advertising and packaging are equally important in order to appeal to the target market. In addition, it is important to
market your product to new demographics in order to grow your revenue stream.
⮚ Products may also become redundant or need to be pivoted to meet changing demands. An example of this is Netflix, who
moved from a DVD rental delivery model to subscription streaming.
⮚ Understanding the product life cycle allows you to keep reinventing and innovating with an existing product (like the iPhone) to
reinvigorate demand and elongate the product’s market life.

DEFINITION & NOTES
PRODUCT LIFE CYCLE

DEFINITION & NOTES
PRODUCT LIFE CYCLE

DEF/NOTES
PRODUCT LIFE CYCLE

DEF/NOTES
PRODUCT LIFE CYCLE - DEFINITION
? The term product life cycle refers to the length of time a product is introduced to consumers into the
market until it's removed from the shelves. The life cycle of a product is broken into four stages—
introduction, growth, maturity, and decline. This concept is used by management and by marketing
professionals as a factor in deciding when it is appropriate to increase advertising, reduce prices, expand
to new markets, or redesign packaging. The process of strategizing ways to continuously support and
maintain a product is called product life cycle management.
? Products, like people, have life cycles. A product begins with an idea, and within the confines of modern
business, it isn't likely to go further until it undergoes research and development (R&D) and is found to
be feasible and potentially profitable. At that point, the product is produced, marketed, and rolled out.
? As mentioned above, there are four generally accepted stages in the life cycle of a product—introduction,
growth, maturity, and decline.
? Introduction: This phase generally includes a substantial investment in advertising and a marketing
campaign focused on making consumers aware of the product and its benefits.
? Growth: If the product is successful, it then moves to the growth stage. This is characterized by growing
demand, an increase in production, and expansion in its availability.
? Maturity: This is the most profitable stage, while the costs of producing and marketing decline.
? Center for Executive Education - 2020
Decline: A product takes on increased competition as other companies emulate its success—sometimes
DEF/NOTES
with enhancements or lower prices. The product may lose market share and begin its decline.
Law of Diffusion of Innovation
Innovation everyday
Licensable
A better way to sell
More Apps
Imitation technology and solutions
Start Ups –exhausted mid way
Question is what Innovation would be

successful
What innovation fails

NETFLI
X UBER
UPI WHATS APP
MFINE ALEX
A ATM
chat-gpt
EV SMART PHONES
MFINE like Practo is a medical consulting app

Adopter category Definition
Innovators are willing to take risks, have the highest social status, have financial liquidity, are social and have closest
Innovators contact to scientific sources and interaction with other innovators. Their risk tolerance allows them to adopt
technologies that may ultimately fail. Financial resources help absorb these failures.
These individuals have the highest degree of opinion leadership among the adopter categories. Early adopters have
a higher social status, financial liquidity, advanced education and are more socially forward than late adopters. They
Early adopters
are more discreet in adoption choices than innovators. They use judicious choice of adoption to help them maintain a
central communication position.
They adopt an innovation after a varying degree of time that is significantly longer than the innovators and early
Early Majority adopters. Early Majority have above average social status, contact with early adopters and seldom hold positions of
opinion leadership in a system
They adopt an innovation after the average participant. These individuals approach an innovation with a high degree
of skepticism and after the majority of society has adopted the innovation. Late Majority are typically skeptical about
Late Majority
an innovation, have below average social status, little financial liquidity, in contact with others in late majority and
early majority and little opinion leadership.
They are the last to adopt an innovation. Unlike some of the previous categories, individuals in this category show
little to no opinion leadership. These individuals typically have an aversion to change-agents. Laggards typically tend
Laggards
to be focused on "traditions", lowest social status, lowest financial liquidity, oldest among adopters, and in contact
with only family and close friends.

DEF/NOTES
8 Distribution (Place) Strategies
▪ Product availability
where and when
customers want them.
Place
▪ Involves all activities
from raw materials to
finished products

PLACE
⮚ The role of place in 4Ps of marketing will help appreciate the importance of place in the availability of a
product in the consumer’s market. Based on different properties of products, variations in the core
distribution mix of place is observed. FMCG products tend to be consumed faster, and hence shorter
distribution channels are managed. However, non-perishables typically result from long-winded supply
chains.
⮚ You might have the perfect product that will satisfy your customers’ need and offer high value. But
unless you don’t have a process to make the product available for purchase in the consumer’s market,
you won’t do sales and won’t earn profit, which is the core motivation behind any business model.
⮚ What do you do when you want to buy groceries?
⮚ Where do you go to buy a piece of furniture or a car?
⮚ How do electric power generation companies procure machinery and equipment to setup a power plant?
⮚ Place in marketing mix strategy can be understood as the means by which a product reaches the end
consumer. In today’s interaction, we will understand what constitutes Place in marketing mix

DEFINITION & NOTES
acknowledge the source
https://www.slideshare.net/tutor2u/marketing-mix-place-12923222
Significance of Place
⮚ Think about any product or commodity that you use, say pulses in your meal. How do farmers growing lentils
transport their produce so that it reaches consumers?
⮚ Or consider the electronic device we are interacting on; it was delivered to you through a network of intermediates
which made the product (your laptop or smartphone) available for purchase, say on Amazon, during the Diwali sale,
and delivered it at your doorstep.
⮚ Being marketers, let’s view the situation from the marketer’s perspective. What are the steps to a successful
marketing campaign? Or, how to achieve the desired target of sales growth for your product? Together we will
answer all these questions that might be probing your mind as we go ahead.
⮚ To begin with, companies manufacture or produce products to sell to consumers. They price these products fairly
based on factors like the value delivered. Next, through promotional strategies, awareness and interest is created in
the target audience’s mind.

DEFINITION & NOTES
PLACE
Think about any product or commodity that you use, say pulses in your meal. How do farmers growing lentils transport their produce so that it reaches consumers? Or consider the electronic
device we are interacting on; it was delivered to you through a network of intermediates which made the product (your laptop or smartphone) available for purchase, say on Amazon, during the
Diwali sale, and delivered it at your doorstep.Being marketers, let’s view the situation from the marketer’s perspective. What are the steps to a successful marketing campaign? Or, how to
achieve the desired target of sales growth for your product? Together we will answer all these questions that might be probing your mind as we go ahead. To begin with, companies manufacture
or produce products to sell to consumers. They price these products fairly based on factors like the value delivered. Next, through promotional strategies, awareness and interest is created in the
target audience’s mind.
Place in marketing mix refers to the geographical location in which the company sells its products and provides its services.
It is said that location is one of the most important parts of marketing strategy. That is why, a smart consumer will research opportunities that are accessible to them locally, and then
proceed to making a payment.
Where you sell your products is important because the location must have your target customers. There is no sense in selling products to people who are not interested in your product or
service. So, a firm should position and distribute its product in a place that is easily accessible to its potential buyers/customers. Place does not always refer to the store location. It also
refers to the placing of products inside a store. Generally, companies like P&G demand their products to be prioritized in the planogram for a store. This would mean that their products
should be placed in a manner where the products meet the eye-level of the customer walking inside the store. Nowadays, when everything is shifting towards digital platforms, it becomes
necessary for firms to place them on those digital platforms and leverage digital marketing. So in some cases, placement may also refer to the act of including a product on television
shows, in films, or on web pages in order to seek attention for the product. This increased placement of more and more firms on digital platforms has led to a rise in e-commerce sector.
Elements of Place
⮚ The element Place in marketing mix strategy ensures the availability of product to the intended end consumer. We need to ensure
3 specific aspects of availability –
⮚ The right place - Groceries must be made available at every local supermarket or the next-door kirana store. A hatchback car
however, will only be available for purchase in company showrooms.
⮚ The right time - Umbrellas must hit the market before the onset of monsoon season and must be available throughout the
season, to be replaced with woollen caps and mufflers as winter sets in. Winterwear available in the hot months will attract
negligible sales because of seasonality.
⮚ The right quantity - You buy only one LED TV set after browsing through numerous models at different digital stores, all
offering appealing features at a broad price range. However, while purchasing vegetables, you visit just a handful of roadside
stalls, observe only few aspects ensuring freshness of product, and buy by weight.
⮚ These days products are not sold just offline in retail stores, wholesale markets and community marketplaces. An exponential
increase in online purchase of a wide range of goods in predominant through websites, online stores, and e-commerce interfaces.
⮚ Simply put, place in 4Ps of marketing means the methods by which a product is transported from the producer along a series of
intermediaries to be delivered to the intended end user or customer.
⮚ Now the next obvious question in your mind is: how does product reach the market? Let me introduce you to the concept of
distribution channels.

DEFINITION & NOTES
PLACE - Distribution
⮚ Place in marketing mix, in layman terms, means distribution. This is because the place of production
isn’t the same as the place of consumption. Companies establish processes to implement distribution
methods to overcome this gap between manufacturers and consumer marketplace.
⮚ Product can be distributed by company in various ways. And this may involve various stakeholders at
different levels.

DEFINITION & NOTES
Distribution
⮚ Direct Distribution ⮚ Indirect Distribution
⮚ By intuition, this involves various intermediaries in this process of

⮚ This means the producer makes product available in distributing the product to the consumer market. These intermediaries
consumer market and performs sales by self. Consider an IT are middlemen, including any number of levels from agents to
wholesalers, distributors and retailers.
company implementing an ERP system for order processing
for a regional food franchise. The IT firm will deliver the
customized product to the food joint, which will directly ⮚ Consider the journey of a bar of Lux soap from its manufacturing
plant in Dankuni, on the outskirts of Calcutta, to your local
utilize the benefits of the ERP system for its daily operations supermarket. The product, along with thousands of others, is shipped
and strategic planning. to a network of redistribution stockists across the country, which
further distribute smaller quantities to retail outlets reaching the
entire urban population. Often, even from these retail outlets, the
⮚
stock is supplied to grocery stores, chemists, kiosks and general
Firms shipping directly to customers need to manage own stores.
logistics systems, warehousing and resources. Due to the
one-to-one interaction between company and customer,
firms focus on building customer loyalty through their ⮚ Apart from this channel of distribution, HUL also has relations with
numerous channel partners who partner with self-service stores and
relationships with different elements of the brand. supermarkets as a lower-level distribution channel.
⮚ Though requirements are capital intensive, the distribution ⮚ Within indirect distribution, you can have multiple number of levels
of distribution based on number of middlemen involved in the
process itself, due to being shorter, incurs less per unit cost distribution process
compared to other channels of distribution.
DEFINITION & NOTES
8 Promotion Strategies
▪ Role is to bring about

exchanges with target
markets
Promotion
▪ Includes integration of
personal selling,
advertising, sales
promotion, and public
relations

Promotion 1/2
? Promotion in 4Ps of marketing mix implies the process of acquainting the target consumers about the
brand and convincing them to buy the product or service. The purchasing behaviour of consumers is
heavily impacted by Promotion, and it is one of the most powerful Ps of the marketing mix.
? Promotion helps a company in the following ways:
? Branding
? When a consumer wants to purchase something, their mind is the first place where they search for
information, and effective promotion and advertising of the product or service is the key to pop up first
in the minds of the consumer. Promotion in marketing mix helps in generating brand image and a
correctly planned promotion campaign with creative advertising makes you stand out and make an
impact on the minds of consumers.

DEFINITION & NOTES
Promotion 2/2
? Increase/Create Demand in the Market

? The importance of promotion in marketing mix is such that it builds awareness about your brand and the product in the market by
targeting the right set of consumers. Thus, leading to the creation of demand in the market and finally, an increase in sales for
your company.
? Inform Differentiation
? You might also use promotion to communicate the differentiating factor within your brand or product that makes you stand out of
the competition. This ensures a unique image of the brand in the minds of the consumers or else they might get confused between
two brands, and that can cost you your sales.
? To Strengthen the Brand Image

? Sometimes with changing consumer behaviour, lifestyle or beliefs, it becomes necessary to change the brand image for better
positioning.
? For example, in the case of “Fair and lovely” being changed into “Glow and lovely” because as per the belief of the new
generation, fairness is no longer a superior factor.

DEFINITION & NOTES
Elements of Promotion in Marketing Mix
⮚ Your brand might target a diverse set of consumers and consumers belonging to different age group,
having different interests, speaking different language, earning different levels of income etc., consume
information via various sources of media. Thus, to reach all of them, different elements of promotion are
defined. These elements are together referred to as Promotion Mix.
⮚ Advertising
⮚ Sales Promotion
⮚ Public Relations
⮚ Direct and Database Marketing
⮚ Events
⮚ Online and Social Marketing
⮚ Personal Selling

DEFINITION & NOTES
COMMUNICATIONS hence PROMOTION

SOURCED FROM SLIDESHARE
ALL RIGHTS ACKNOWLEDGED

Consumer Decision Making Process
• These stages are problem recognition,
information search, evaluation, purchase
for initial trial, and finally, repeat
purchase and adoption of the product.
• In the cognitive stage, the consumer
determines that she has a need and
examines the options that could satisfy
that need. So, she thinks about different
products and their benefit. In this stage,
the communicators job, your job, if you're
sending the message just to convey a
message to the potential consumer. This
involves making the consumer aware of
the existence of the product and then
getting her to consider the product by
conveying positive information.
• The affective stage, when the consumer
uses her emotions and feelings as a basis
for judgment. This have her change her
attitude about a product leading to a
strong intent to purchase, to try the
Center for Executive Education - 2020 product.
DEFINITION & NOTES
Consumer Decision Making Process
• behavioral stage which involves the
consumer finally taking action,
resulting in not only a trial
purchase, but a repeat purchase of
the product with eventual loyalty
developing towards the brand or
the product itself. We have to
remember, these stages that's listed
here are for products, for which
consumers devote some time in the
decision-making process, products
that are more expensive or entail
some measure of risk including
social health risk.

DEFINITION & NOTES
8 Pricing Strategies
▪ The most flexible of

the “4 Ps”
Price
▪ Price X Units Sold =
Total Revenue

PRICE
⮚ This fourth P is the only element in the
marketing mix that generates profit. Its job is
to determine how the value that has been
created can be divided between the customer
by providing then with an incentive to buy
the product. And the organization by
covering the cost associated with the value
creation effort and then generating profit.
⮚ price isn't just about recovering cost,
remember we said that? It's about extracting
value, it's about getting the value that ECONOMY CLASS TICKET Rs 15,000
customers place on the product. But in so BUSINESS CLASS TICKET Rs 21,000
doing, the firm incentivizes the customer to • Ease of travel Rs 3000
• Late check in Rs 1000
purchase a product by not extracting the • Lounge Access Rs 1000
maximum value that they've estimated the • Priority Luggage Rs 1000
benefits to be worth • Better food Rs 1000
• Feel good factor Rs 500
• Miles gained Rs 1000
Center for Executive Education - 2020 • Total Rs 8500 (Rs
23,500)
DEFINITION & NOTES
4Ps and 4Cs
https://blog.interactiveschools.com/blog/4-cs-the-modern-marketing-replacement#:~:text=P's%20or%20C's&text=The%20decline%20in%20a
%20one,wants%20and%20needs%20of%20consumers.

? The 4 C’s of marketing, which consist of Consumer
wants and needs, Cost, Convenience, and
4Ps and 4Cs Communication, are arguably much more valuable to

the marketing mix than the 4 P’s. They focus not
only on marketing and selling a product but also on
communication with the target audience from the
beginning of the process to the very end.
? As marketers, we’re all taught about the four
pillars of marketing strategy. The 4 P’s- Product, ? The 4 P’s focus on a seller-oriented marketing
Price, Place, and Promotion are ingrained in our strategy, which can be extremely effective for sales.
memory from day one of our education in the However, the 4 C’s offer a more consumer-based
marketing world. However, these four categories perspective on the marketing strategy.
align with four other, more realistic pillars of ? The 4 C’s of marketing can be highly beneficial to
marketing: the 4 C’s. any marketing strategy. This strategy forces
marketers to really understand their audience before
they even being to develop a product. This strategy
requires communication throughout the entire
process, from start to finish, and begins with
understanding what the customer wants and needs
out of your product.
? When utilizing the 4 C’s, just remember to always

think of your customer first, and communicate with
them along the way. Consequently, your audience
Center for Executive Education - 2020 will feel like you are speaking directly to them and
their needs. DEFINITION & NOTES
4Ps and 4Cs
? The first C in this marketing mix is the ? The Second C in this marketing mix is cost.
customer’s wants and needs. Instead of focusing Don’t confuse the cost of your product with
on the product itself, the first C focuses on filling its price. Price is only a small segment of the
a void in the customer’s life. overall cost of buying a product to a
customer. It is important to determine of
? This marketing strategy is important for overall cost – not price – of your product to
businesses that are interested in seeking an the customer. Cost not only includes price of
understanding of their customers. Once you the item, but also may include things such as
understand your customer, it becomes much the time it takes for the customer to get to
easier to create a product that will be of benefit your location in order to buy your product,
to them. The customer makes the purchase or the cost of gas that it takes to get them
decision and is, therefore, the most valuable there. Cost can also include the product’s
resource in any marketing strategy. benefit, or lack-there-of, to the customer.

DEFINITION & NOTES
4Ps and 4Cs
? The Third C within this marketing mix is ? The fourth and final C in this marketing mix is
convenience. Convenience is similar to “place” in the communication. Communication is always key to
4P’s marketing strategy. However, these two are very business marketing; without it, the 4 C’s would not
different. Place simply refers to where the product be effective. Communication is similar to the fourth
P, promotion; however, it is very different.
will be sold. Convenience is a much more customer-
oriented approach to this marketing strategy
? Once you have analyzed your customer’s habits, you ? Promotion of a product is used to sway customers in
should be able to know whether they shop online or order to get them to buy a product. Promotion can
in stores as well as what they are willing to do to buy often be manipulative and ineffective. However,
communication is (again) a customer-oriented
your product. The overall cost of the product will
approach to the task of selling products.
determine in part its convenience to your target
Communication requires interaction between the
audience. The goal is to make the product cost buyer and seller. This marketing strategy can very
effective and simple enough for the customer to attain easily be implemented through the use of social
the product without having to jump through hoops. media.

DEFINITION & NOTES
7 Ps of Marketing

7Cs of Marketing


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Center for Executive Education

Course Code: 18EPG103

Term 01-Marketing Management

Center for Executive Education - 2020

Center for Executive Education - 2020

Center for Executive Education - 2020

Center for Executive Education - 2020

Center for Executive Education - 2020

Center for Executive Education - 2020

● Structure / Framework Principles of Marketing or Marketing by Philip Kotler

MARKET - MARKETING - MARKETING MANAGEMENT

● Complete Google Forms within deadline

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● Thankfully, these concepts give us an idea or direction

Center for Executive Education - 2020

Center for Executive Education - 2020

● Enjoyed rollercoaster ride Engineering to

● X: @nramesh101 or look for ramesh nagasamudram

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○ Complete the Google Form in 15 mins

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● Role of Marketing in an organization

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Center for Executive Education - 2020

The Power of Storytelling in Leadership

Examples of Storytelling by Successful CEOs:

D Center for Executive Education - 2020

These are NEEDS and

Center for Executive Education - 2020

Center for Executive Education - 2020

? Let us dive deeper into the subject

Center for Executive Education - 2020

Center for Executive Education - 2020

🠶 KINGS AND TAXES

? HUNTERS AND 🠶 CAPTURE OF WEALTH ? CREATION OF

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? Kings funded enterprise. Enterprises

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? The Industrial Revolution transformed 🠶 Rich and Poor nation divide.

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? END OF WORLD WAR 2

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🠶 SELLERS MARKET ? SELLER NEEDS TO PLEASE THE BUYER 🠶 BUYERS MARKET

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Center for Executive Education - 2020

If you don’t listen or pay attention to the feedback you are

Center for Executive Education - 2020

Center for Executive Education - 2020

? GIVE SOME EXAMPLES OF VARIOUS NEEDS / WANTS AND DEMANDS

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Center for Executive Education - 2020

Center for Executive Education - 2020

Center for Executive Education - 2020

Change the rules of the game

Pay for Coffee Pay for Desk

Pay for Voice Pay for Data

Wives Fly Free

Change the rules of the game

Center for Executive Education - 2020

Center for Executive Education - 2020