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SBA SEMESTER ONE SESSION 2 BASICS OF MARKETING- I

BASICS OF MARKETING – 1

SESSION 2

Key terminologies

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SBA SEMESTER ONE SESSION 2 BASICS OF MARKETING- I

Learning objectives

• To understand the scope of marketing function

• To understand the key terminologies used in marketing text

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SBA SEMESTER ONE SESSION 2 BASICS OF MARKETING- I

Scope of marketing

• Goods :Soaps, Shampoos• Services : Banks, Insurance • Experiences :Esselworld• Events : IPL• Persons :Religious gurus• Places : Kerala Tourism• Properties :Real estate• Organizations : Any corporate/social

organization• Information :Britanica Encyclopedia• Ideas :Every market offering includes idea-Some

other idea examples –”Save the tiger” campaign , “Lead India” campaign from TOI

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SBA SEMESTER ONE SESSION 2 BASICS OF MARKETING- I

Scope of marketing

Marketing decision making relates to :• Consumer markets• Business markets• Global markets• Non profit and government markets

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SBA SEMESTER ONE SESSION 2 BASICS OF MARKETING- I

Core marketing concepts

Target market and segmentation• Marketers view the sellers as constituting the

industry and the buyers as constituting the market

• Marketers can rarely satisfy everyone in the market. So they start with ‘ market segmentation’.

• Market segmentation involves identifying and profiling different groups of buyers.

• Target Markets present the greatest opportunity – those whose needs the firm can meet in a superior fashion.

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SBA SEMESTER ONE SESSION 2 BASICS OF MARKETING- I

Core marketing concepts

Markets as various grouping of customers:

• Need markets (the diet seeking market)• Product markets (the shoe market)• Demographic markets (the youth market)• Geographic market (the Maharashtra market)• Other markets like voter markets, donor markets, etc.

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SBA SEMESTER ONE SESSION 2 BASICS OF MARKETING- I

Core marketing concepts

Product or offerings• A product is any offering that can satisfy a need or want. • Major typed of basic offerings: Goods, services, Experiences, events, persons, places, properties, organizations, information and ideas.• A brand is an offering from a known source.• Product and brand are not the same. The brand experience is perceived , and much more than a physical product experience

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SBA SEMESTER ONE SESSION 2 BASICS OF MARKETING- I

Core marketing concepts

• Value Proposition : A statement by company on what value is being delivered to the consumer

• Market Share : Percentage of total sale of the category by the company – It could be in value as well as volume terms– It could be for a brand or for more than a brand

by the company in the same category

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SBA SEMESTER ONE SESSION 2 BASICS OF MARKETING- I

Core marketing concepts

Marketing channelsTo reach a target market marketer uses three different

kinds of marketing channels.• Communication channel: The marketer uses

communication channels to deliver and receive messages from target buyers. These also include dialogue channels (e mail, toll free numbers).

• Distribution channels: To display and deliver the physical product or service to the buyer or user. They include trade channels such as distributors, wholesalers, retailers etc.

• Service channels: They include banks and insurance companies that facilitate transactions, transporters, etc. which help to carry out transactions with potential buyers.

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SBA SEMESTER ONE SESSION 2 BASICS OF MARKETING- I

Core marketing concepts

Supply chain

• Supply chain represents a value delivery system. When a company moves upstream or downstream, the aim is to capture a higher percentage of supply chain value.

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SBA SEMESTER ONE SESSION 2 BASICS OF MARKETING- I

Core marketing concepts

Competition

Competition includes all the actual and potential rival offerings and substitutes that a buyer might consider.

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SBA SEMESTER ONE SESSION 2 BASICS OF MARKETING- I

Four levels of competition

• Brand competition: Similar products or services to the same customers at similar prices.

• Industry competition: All companies making the same product or the class of product.

• Form competition: All companies manufacturing the products that supply the same service.

• Generic competition: All companies that compete for the same consumer money.

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SBA SEMESTER ONE SESSION 2 BASICS OF MARKETING- I

Examples

• Example: Company – Maruti Udyog • Brand competition: Others n the same price

bracket

• Industry competition: All automobile manufacturers

• Form competition: Automobiles + Motorcycles + Bicycles + Trucks

• Generic competition: Consumer durables + Foreign Vacations + New Homes

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SBA SEMESTER ONE SESSION 2 BASICS OF MARKETING- I

Core marketing concepts

Marketing mixThe set of marketing tool that the firm uses to pursue its marketing objectives in the target market. • Product• Price• Place• Promotion

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SBA SEMESTER ONE SESSION 2 BASICS OF MARKETING- I

Ref: Marketing Management by Philip Kotler