Module 123 - Marketing Fundamentals PDF

**Market:** A place where goods and services are exchanged, involving buyers, sellers, and competition.  **Types of Market:**  1. **Goods and Services:** a. Commodity market - selling items like rice and sugar. b. Stock market c. FMCG (Fast Moving Consumer Goods) d. White goods - like TVs and ref...

**Market:** A place where goods and services are exchanged, involving buyers, sellers, and competition.  **Types of Market:**  1. **Goods and Services:** a. Commodity market - selling items like rice and sugar. b. Stock market c. FMCG (Fast Moving Consumer Goods) d. White goods - like TVs and refrigerators.  2. **Based on Transaction:** a. B2C (Business to Consumer) b. B2B (Business to Business)  3. **Geographical Location**  **Marketing:** The main goal of a business is to create customers. Marketing is the unique function that achieves this, targeting individual buyers, groups, or making group decisions.  **Value Framework:**  1. **Explore Value:** Identifying different customers and products.  2. **Select Value:** Choosing your customer and product by finding customer needs through segmentation, targeting, and positioning.  3. **Create, Communicate, and Deliver Value:** This involves product construction, promotion, and distribution.  4. **Appropriating Value:** The 4Ps - Product, Price, Place, Promotion.  5. **Sustaining Value:** Acquiring and retaining customers.  a. Example: Selling soaps with different types for different needs, like menthol soaps in hot climates for cooling effect.  **Evolution of Marketing:**  1. **Production Concept:** Early stage with hand-made goods.  2. **Product Concept:** Focus on quality, performance, and innovation.  3. **Selling Concept:** Aggressive advertising to connect with customers.  4. **Marketing Concept:** Current stage, developing marketing strategies.  **Pillars of Market:**  1. Target market  2. Customer needs  3. Integrated market  4. Profitability  **Marketing Concept vs. Selling Concept:**  1. Marketing: Identifying needs and developing products.  2. Selling: Starting with a product and then finding a market.  **Marketing Vocabulary:**  1. Target market: Specific groups like women or kids.  2. Mass market: General public.  3. Marketing mix: Strategies like the 4 Ps.  4. The \"Ps\": Product, Price, Place, Promotion, etc.  5. Business market: B2B transactions.  6. Consumer market: Retail to customer transactions.  7. Consumer vs. customer: The buyer vs. the user.  8. Customer relationship management: Building bonds with customers.  9. Social marketing: Marketing for social causes.  10. Digital marketing: Online platforms like YouTube and Facebook.  **Marketing Management:**  1. Planning and executing the 4Ps to create exchanges satisfying organizational and individual goals.  2. Aimed at product promotion and correct execution to achieve goals.  3. Planning involves product value and strategies according to the 4Ps.  **Marketing Career Options:**  1. Marketing manager or director  2. Brand manager  3. Digital marketing manager  4. Market research analyst  5. Advertising manager  6. Public relations specialist  7. Sales manager  8. Product manager  9. Content marketing  To succeed in business, you must provide value to customers. While both Coca-Cola and Pepsi offer similar taste and experience, their target customers differ.    **Segmentation:** This is the process of dividing a market into distinct groups of consumers with similar needs or characteristics, aiming to form a uniform group within a varied market. It's not the products that are segmented, but the customers.  **1. Differentiated Marketing (Rifle Approach):** Identify specific target markets through segmentation and then tailor your positioning strategy and marketing mix to these segments. This approach involves creating customized products and services for identified markets. It's also known as the rifle approach. **2. Undifferentiated (Mass) Marketing:** This strategy doesn\'t differentiate between market segments and aims to reach the entire market with a single offer. **3. Niche Marketing:** Targeting a specific segment with specific products. For example, makeup products designed specifically for theater performers.  **Types of Segmentation:**  1. **Demographic:** Vital statistics about human populations such as age, gender, income, education, and occupation.  2. **Geographic:** Segmentation based on geographic locations.  3. **Psychographic:** This involves understanding the internal self of an individual, including personality and lifestyle. While demographics identify who the customer is, psychographics explain why they behave a certain way. This science combines psychology and demographics to group buyers based on traits like extroversion, introversion, and lifestyle. a. Psychographics consist of personality and lifestyle. b. Strategic Business Insights (SBI) and the VALS framework divide the U.S. adult population into eight groups: Innovators, Thinkers, Achievers, Experiencers, Believers, Strivers, Makers, and Survivors. c. Segmentation can also be done through AIO inventory -- Activities, Interests, and Opinions.  4. **Behavioral:** This looks at the behavior of consumers who have already purchased your product. It considers factors like purchase behavior, brand loyalty, purchase frequency, and reasons for purchasing.  a. Roles in purchasing decisions include: Initiator, Influencer, Decider, Purchaser, and User.  b. Factors to consider include user status, usage rates, readiness to buy, loyalty status, and attitude.  5. **Technographic Segmentation:** Some consumers are tech enthusiasts who purchase items online, while others are not. If the non-tech enthusiasts have interest and money for the product, efforts can be made to convince them to use it.  **Conditions for Effective Segmentation:**  1. Customer demographics.  2. Distinct needs.  3. Potentially profitable customers.  4. Demand for products.  5. Proximity of customers.  6. The segment should not change rapidly.  7. Homogeneous within, heterogeneous between.  **Targeting:** This involves choosing which segment to focus on - **Criteria for Target Selection**: Three main parameters are used: segment size and growth, market attractiveness, and alignment with the organization's objectives and resources. - **Implementation**: The chosen position will guide the messaging and strategies to achieve marketing objectives.   **TARGET SELECTION**   - **Segment Size and Growth**: estimate the potential current demand for a product or service by sampling a geographical area then collect data based on your segmented target, next extrapolate data on purchase intention, ability, and willingness to pay. - **Structural Attractiveness**: Using Michael Porter's five forces model, factors that determine the attractiveness of a market segment: - the threat of new entrants - the market should not be easy to get in. high entry barriers make a market more attractive by limiting new competitors. - The threat of intense segment rivalry - in such cases u want to get out of the market , you should be able to leave easily otherwise youll be stuck when you are making little to no profit or even loss. - The threat of substitute products - the bargaining power of buyers and - The bargaining power of suppliers - **Organization objectives and resource :**   **TARGET STRATEGY**   ( lets take example: group you have men women kids, product you have cloths, shhoes, cosmetics)   1. single segment concentration - women + clothes only 2. selective specialization - women clothes, men and kids shoes only 3. product specialization - cosmetics for men women and kids 4. market specialization - clothes, shoes and cosmetics only for women 5. full market coverage - clothes, shoes and cosmetic for men women and kids. a. Differentiated - when products are different for all three groups. b. Undifferentiated - when products are same for all three groups.  .  **Positioning:** This is about differentiating the product, setting parameters, and creating the desired perception in the target group.