Core Marketing Concepts

NEED•Needs are basic Human requirements for air, food,shelter•Human also have strong needs for recreation, entertainment and education

WANT‘Needs become wants when they are directed to specific objects that might satisfy the needs’

Example about wants•A person in Afghanistan needs food•He wants rice, lamb and carrots

•A person in India needs food•He wants chapattis ,rice curries and yogurt

DEMANDDemands are wants for specific products backed by an ability

to pay

There are five types of needs

Stated NeedsReal Needs

Unstated NeedsDelight NeedsSecret Needs

TARGET MARKETS“A target market is a group of

customers towards which a business has decided to aim

its marketing efforts and ultimately its merchandise”

POSITIONING“Positioning is the marketing

activity and process of identifying a market problem

or opportunity, and developing a solution based

on market research, segmentation and supporting

data”

SEGMENTATION“Market segmentation is a marketing

strategy which involves dividing a broad target market into subsets of consumers, businesses, or countries who have common needs, interests,

and priorities, and then designing and implementing strategies to target

them”

•Companies address customer needs by putting forth value proposition a set of benefits that satisfy those needs•This intangible value proposition is made physical by an offering which can be a combination of products, services, information and experiences

BRANDS•A Brand is an offering from known source•For example McDonald’s associates in mind of people that makes an image of burgers, cleanliness, convenience, golden arches, courteous services

VALUE•The buyer chooses the offerings he perceives to deliver the most value which is sum of all tangible and intangible benefits•Value is a central marketing concept which is primarily a combination of quality, service and price (qsp)

SATISFACTION•Satisfaction reflects a person’s judgement of a product perceived performance in relationship to expectations• If it falls short of expectations customer is disappointed• If it matches the expectations customer is satisfied• If it exceeds customer satisfaction customer is delighted

MARKETING

CHANNEL

COMMUNICATION CHANNEL•These channels deliver and receive message from target buyers and include news papers, televison, telephone, mail, bill boards•Marketers are increasingly adding dialogue channels such as emails , blogs and toll free numbers to familiar monologue channels such as ads

DISTRIBUTION CHANNELS

•The marketers uses distribution channels to display, sell or deliver the physical products or services to buyers•These channels may be via internet , mobile phones or indirect with distributors, wholesalers, retailers and agents

SERVICE CHANNELS•The marketers uses service channels that include warehouse, transportation companies, banks and insurance companies to carry out transaction with potential customers

SUPPLY CHAIN• The supply chain is a longer channel stretching from raw materials to components of finished products carried to final buyers• Each intermediary captures only a certain percentage of the total value generated by supply chain delivery system•When a company acquires its competitor in upstream or down stream

It aims to capture a high percentage of supply chain value

COMPETITION•Competition includes all actual and potential rival offerings and substitutes•Tata steel has competition from Steel authority of India• In a long run Tata steel has a competition from aluminium and plastic companies offering lightweight

MARKETING ENVIRONMENT

TASK ENVIRONMENT•Task environment includes actors engaged in production, distributing and promoting offering•Distributors and dealers include agents, brokers, manufacturer representatives• In supplier group are material supplier and service supplier such as marketing research agencies, banking and insurance companies

BRAOD ENVIRONMENTIt consist of six components :•Demographic environment•Economic environment•Social-cultural environment•Natural environment•Technological environment•Political-legal environment

ReCap•Need, Wants and Demand•Target Markets , Positioning and Segmentation•Offerings and Brands•Value and Satisfaction•Marketing channel and Supply Chain

“Created by Sai Srujan,RGIPT

RaeBareli, during an internship by Prof. Sameer Mathur,IIM

LUCKNOW”