Principles of Marketing

• Marketing In Nutshell
• Key Concepts in Marketing
• Marketing Key theories and Strategies
• Marketing Channels
• Global Marketing

By: Dr. Muhammad Farooq

BBA (Hons), MS- Management Sciences, PhD Management Sciences

Department of Management Sciences , Emerson University,

Multan, Pakistan

Emerson University , Multan, Pakistan - Confidential- Dr. Muhammad Farooq

*Presentation slides are made by Dr. Muhammad Farooq for Business and Management Sciences students of Emerson University Multan, Pakistan
 Course Objective
After successful completion of this course, students are expected to have
knowledge about:

Fundamental Various types Marketing mix Marketing Social

marketing of markets and elements & channels and responsibility
concepts and customer Marketing their types and ethics in
marketing purchase Information marketing
strategies behaviours System

Emerson University , Multan, Pakistan - Confidential- Dr. Muhammad Farooq

*Presentation slides are made by Dr. Muhammad Farooq for Business and Management Sciences students of Emerson University Multan, Pakistan
 Marketing in Nutshell

• It includes the coordination of four

elements called the 4 P's of
marketing:
• identification, selection and development of a product,

• determination of its price,

• selection of a distribution channel to reach the

customer's place, and

• development and implementation of a promotional

strategy.

Emerson University , Multan, Pakistan - Confidential- Dr. Muhammad Farooq

*Presentation slides are made by Dr. Muhammad Farooq for Business and Management Sciences students of Emerson University Multan, Pakistan
 Marketing Core

• Philip Kotler defines marketing as :-marketing is about Satisfying needs

and wants profitably through an exchange process.

• The Chartered Institute of Marketing defines marketing as: "the

management process responsible for identifying, expecting and

satisfying customer needs and wants profitably “

Emerson University , Multan, Pakistan - Confidential- Dr. Muhammad Farooq

*Presentation slides are made by Dr. Muhammad Farooq for Business and Management Sciences students of Emerson University Multan, Pakistan
 What is Product?

Product – Anything that can

be offered to a market for
attention, acquisition, use, or
consumption that might
satisfy a need or want
(Kotler and Armstrong, 2015)

Emerson University , Multan, Pakistan - Confidential- Dr. Muhammad Farooq

*Presentation slides are made by Dr. Muhammad Farooq for Business and Management Sciences students of Emerson University Multan, Pakistan
 What is Service?

Service – A form of product

that consists of activities,
benefits,, or satisfactions
offered for sale that are
essentially intangible, and do
not result in the ownership of
anything
(Kotler and Armstrong, 2015)

Emerson University , Multan, Pakistan - Confidential- Dr. Muhammad Farooq

*Presentation slides are made by Dr. Muhammad Farooq for Business and Management Sciences students of Emerson University Multan, Pakistan
 Tangibles

Tangible products – Often

referred to as goods, it is
taste smell sight hearing touch
something that stimulates
You are using your senses right now!
the 5 senses.

(Kotler and Armstrong, 2015)

Emerson University , Multan, Pakistan - Confidential- Dr. Muhammad Farooq

*Presentation slides are made by Dr. Muhammad Farooq for Business and Management Sciences students of Emerson University Multan, Pakistan
 Intangibles

Intangible products – Products

cannot be seen, smelt, heard or
touched (mostly in the forms of
services) and only available at
the time of use.

(Kotler and Armstrong, 2015)

Emerson University , Multan, Pakistan - Confidential- Dr. Muhammad Farooq

*Presentation slides are made by Dr. Muhammad Farooq for Business and Management Sciences students of Emerson University Multan, Pakistan
 Need

Need – Basic
requirement such
as Air, Water,
Sleep, food and
shelter

Valuation addition needs can create great companies

Emerson University , Multan, Pakistan - Confidential- Dr. Muhammad Farooq
*Presentation slides are made by Dr. Muhammad Farooq for Business and Management Sciences students of Emerson University Multan, Pakistan
 Want?

Want–Specific
requirement for
products, or services
to match a need.

Companies which fulfil needs in shape of wants

Emerson University , Multan, Pakistan - Confidential- Dr. Muhammad Farooq
*Presentation slides are made by Dr. Muhammad Farooq for Business and Management Sciences students of Emerson University Multan, Pakistan
 Demand

Demand – A set of
wants + desire +
ability to pay for the
exchange.

This Photo by Unknown Author is licensed under CC BY-NC

Emerson University , Multan, Pakistan - Confidential- Dr. Muhammad Farooq

*Presentation slides are made by Dr. Muhammad Farooq for Business and Management Sciences students of Emerson University Multan, Pakistan
 Satisfaction

Satisfaction – The degree to

which the actual use of a
product matches the
perceived value at the
time of the purchase (Kotler
and Armstrong, 2015).

Emerson University , Multan, Pakistan - Confidential- Dr. Muhammad Farooq

*Presentation slides are made by Dr. Muhammad Farooq for Business and Management Sciences students of Emerson University Multan, Pakistan
 Perceived Value

Perceived value – Consumer’s

overall assessment of the utility
of a product based on
perception on what is
received and what is given
(Parasuraman, 1997).

Emerson University , Multan, Pakistan - Confidential- Dr. Muhammad Farooq

*Presentation slides are made by Dr. Muhammad Farooq for Business and Management Sciences students of Emerson University Multan, Pakistan
 Customer Value

Customer value – Customer’s

perceived preference for, and
evaluation of those product
attributes, attribute performances,
and consequences.

Emerson University , Multan, Pakistan - Confidential- Dr. Muhammad Farooq

*Presentation slides are made by Dr. Muhammad Farooq for Business and Management Sciences students of Emerson University Multan, Pakistan
 Global Marketing

• Global marketing is defined as: the process of adjusting the marketing

strategies of your company to adapt to the conditions of other countries.

• Global marketing is more than selling your product or service globally.

• It is the full process of planning,

creating, positioning, and

promoting your products

in a global market.
Emerson University , Multan, Pakistan - Confidential- Dr. Muhammad Farooq
*Presentation slides are made by Dr. Muhammad Farooq for Business and Management Sciences students of Emerson University Multan, Pakistan
 Global and Regular Marketing

• Global marketing focuses on global market

opportunities and threats.

• the main difference between the regular marketing and

global marketing is the scope of activities because
global marketing occurs in markets outside the
organization’s home country.

• Currently, with the internet, even small businesses can

reach consumers anywhere in the world.

Emerson University , Multan, Pakistan - Confidential- Dr. Muhammad Farooq

*Presentation slides are made by Dr. Muhammad Farooq for Business and Management Sciences students of Emerson University Multan, Pakistan
 Benefits of Global Marketing

• There are many benefits of global marketing, when it is done

right.
• First, it can improve the effectiveness of your product or service.
• Second, you can have a strong competitive advantage. It is
easy enough for companies to be competing in the local
market. But there are very few companies who can do so on
the worldwide arena.
• Third, you increase consumer awareness of your brand and
product or service.
• Finally, global marketing can reduce your costs and increase
your savings through economies of scale.
Emerson University , Multan, Pakistan - Confidential- Dr. Muhammad Farooq
*Presentation slides are made by Dr. Muhammad Farooq for Business and Management Sciences students of Emerson University Multan, Pakistan
 Going Global Decision Process

• How does a company decide which

markets to enter?
▪ Company resources.

▪ Managerial mind-set.

▪ Nature of opportunities in that Market

▪ Nature of threats in that market.

Emerson University , Multan, Pakistan - Confidential- Dr. Muhammad Farooq

*Presentation slides are made by Dr. Muhammad Farooq for Business and Management Sciences students of Emerson University Multan, Pakistan
 Reason of global Marketing
• Growth
▪ Access to new markets

▪ Access to resources
• Survival

▪ Against competitors with lower costs (due to increased access to resources).

• Create value for customers:

– Improve the product

– Find new distribution channels

– Create better communications

Emerson University , Multan, Pakistan - Confidential- Dr. Muhammad Farooq

*Presentation slides are made by Dr. Muhammad Farooq for Business and Management Sciences students of Emerson University Multan, Pakistan
 How Big Is The Global Market?

Emerson University , Multan, Pakistan - Confidential- Dr. Muhammad Farooq

*Presentation slides are made by Dr. Muhammad Farooq for Business and Management Sciences students of Emerson University Multan, Pakistan
 Consumer and Business Marketing Channels
• The group of individuals, businesses, and initiatives that collaborate to move things
(products and services) from the place of origin to the site of consumption is referred to
as a marketing channel.
• A marketing channel's main goal is to establish a connection between the company
that produces a good or service and potential clients who might be interested in buying
it.

Emerson University , Multan, Pakistan - Confidential- Dr. Muhammad Farooq

*Presentation slides are made by Dr. Muhammad Farooq for Business and Management Sciences students of Emerson University Multan, Pakistan
 Consumer and Business Marketing Channels

Consumer Channels Business to Business Channels

Emerson University , Multan, Pakistan - Confidential- Dr. Muhammad Farooq

*Presentation slides are made by Dr. Muhammad Farooq for Business and Management Sciences students of Emerson University Multan, Pakistan
 Why Marketing Channels are important?

Marketing Channels are important because marketing channels determine how

and where customers will buy the products

Consumer Channels Business to Business Channels

Emerson University , Multan, Pakistan - Confidential- Dr. Muhammad Farooq

*Presentation slides are made by Dr. Muhammad Farooq for Business and Management Sciences students of Emerson University Multan, Pakistan
 key functions of Marketing Channels?
Marketing Communications
• Advertising the Product
• Providing P-O-P Displays
• Providing a salesforce that offers information & service to customers

Inventory Management
• Ordering appropriate merchandise assortment
• Maintaining adequate stock to meet customer demand
• Storing merchandise in an appropriate facility

Emerson University , Multan, Pakistan - Confidential- Dr. Muhammad Farooq

*Presentation slides are made by Dr. Muhammad Farooq for Business and Management Sciences students of Emerson University Multan, Pakistan
 key functions of Marketing Channels?
Physical Distribution
• Delivering products
• Coordinating delivery schedules to meet customer expectations
• Arranging for the return of defective merchandise

Market Feedback
• Serving on manufacturer advisory boards
• Informing other channel members of competitive activity
• Participating in test market evaluations

Emerson University , Multan, Pakistan - Confidential- Dr. Muhammad Farooq

*Presentation slides are made by Dr. Muhammad Farooq for Business and Management Sciences students of Emerson University Multan, Pakistan
 key functions of Marketing Channels?
Financial Risk

• Offering credit

• Managing risks related to product loss or deterioration

• Managing risks related to product safety and liability

Emerson University , Multan, Pakistan - Confidential- Dr. Muhammad Farooq

*Presentation slides are made by Dr. Muhammad Farooq for Business and Management Sciences students of Emerson University Multan, Pakistan
 What is benefit of middleman?
•Economic value is the worth of a
Provide good or service determined by
Economic people's preferences and the trade-
Value: offs they choose given their scarce
resources.

Emerson University , Multan, Pakistan - Confidential- Dr. Muhammad Farooq

*Presentation slides are made by Dr. Muhammad Farooq for Business and Management Sciences students of Emerson University Multan, Pakistan
 What is benefit of middleman?

• Social value is the quantification of the

Provide Social
relative importance that people place on
Value:
the changes they experience in their lives.

Provide
• Support in the market in terms of product
Marketing
communication, availability
Support

Emerson University , Multan, Pakistan - Confidential- Dr. Muhammad Farooq

*Presentation slides are made by Dr. Muhammad Farooq for Business and Management Sciences students of Emerson University Multan, Pakistan
 What is benefit of middleman?

Impact • Helps the manufacturer and service

Supply-chain provider in focusing on their competitive
Management advantage.

Add Value to
• Additional human capital involvement and
the Market
ease in customer effort
Offering

Emerson University , Multan, Pakistan - Confidential- Dr. Muhammad Farooq

*Presentation slides are made by Dr. Muhammad Farooq for Business and Management Sciences students of Emerson University Multan, Pakistan
 Types of Marketing Channels

Systems
Direct Channels

Indirect Channels

Channels

Channels
Single Marketing

Vertical Marketing
Multiple Marketing

Emerson University , Multan, Pakistan - Confidential- Dr. Muhammad Farooq

*Presentation slides are made by Dr. Muhammad Farooq for Business and Management Sciences students of Emerson University Multan, Pakistan
 Direct Channels

A direct marketing channel consists of just two parties—a producer and a

consumer. By contrast, a channel that includes one or more intermediaries
(wholesaler, distributor, or broker or agent) is an indirect channel. Firms often utilize
multiple channels to reach more customers and increase their effectiveness.
For example : Mail, email, social media, and texting campaigns

Emerson University , Multan, Pakistan - Confidential- Dr. Muhammad Farooq

*Presentation slides are made by Dr. Muhammad Farooq for Business and Management Sciences students of Emerson University Multan, Pakistan
 Indirect Channels
• An indirect channel outsources the distribution of those products to different
intermediaries that are responsible for delivery. One goal of any company with
customers is to deliver products in the most efficient and effective way for the
customer and the company.
• Buying Nike shoes through websites like Zappos and Amazon, or purchasing
them at any other sporting goods stores is an example of an indirect sales
channel

Emerson University , Multan, Pakistan - Confidential- Dr. Muhammad Farooq

*Presentation slides are made by Dr. Muhammad Farooq for Business and Management Sciences students of Emerson University Multan, Pakistan
 Single Marketing Channels

• Single channel refers to a producer or

retailer's effort to reach customers
through only one distribution option,
regardless of whether it's online,
catalogue, mail-order, face-to-face
selling or traditional retail. This approach
reduces marketing investments and
organizational complexity
• For example, Instagram shop

Emerson University , Multan, Pakistan - Confidential- Dr. Muhammad Farooq

*Presentation slides are made by Dr. Muhammad Farooq for Business and Management Sciences students of Emerson University Multan, Pakistan
 Multi Marketing Channels

• Multichannel marketing
refers to the practice by
which companies
interact with customers
via multiple channels,
both direct and indirect,
to sell them goods and
services.

Emerson University , Multan, Pakistan - Confidential- Dr. Muhammad Farooq

*Presentation slides are made by Dr. Muhammad Farooq for Business and Management Sciences students of Emerson University Multan, Pakistan
 vertical marketing system

• A vertical marketing system refers to the teamwork of the

different members of any distribution channel. This can
include producers, retailers, and wholesalers. All of them
need to work with one another in order to successfully
deliver products to consumers and achieve the best
possible efficiency.
• An example of an administered vertical marketing system
is Procter & Gamble

Emerson University , Multan, Pakistan - Confidential- Dr. Muhammad Farooq

*Presentation slides are made by Dr. Muhammad Farooq for Business and Management Sciences students of Emerson University Multan, Pakistan
 Development of Marketing Channels

The
development • Buyer Preferences- daily consumption
of channel goods
strategies
• Relationship Orientation- Telecom
requires
Operator
decisions in
three key • Degree of Market Coverage-
areas:
Emerson University , Multan, Pakistan - Confidential- Dr. Muhammad Farooq
*Presentation slides are made by Dr. Muhammad Farooq for Business and Management Sciences students of Emerson University Multan, Pakistan
 Examples of Global Marketers

• Coca-Cola • USA

• Philip Morris • USA

• McDonald’s • USA

• Toyota • Japan

• Ford
• USA

• Unilever
• UK/ Netherlands

• Gillette
• USA

• IBM
• USA

Emerson University , Multan, Pakistan - Confidential- Dr. Muhammad Farooq

*Presentation slides are made by Dr. Muhammad Farooq for Business and Management Sciences students of Emerson University Multan, Pakistan
 Product Levels
This includes all the augmentations and transformations a product might undergo in the future. To ensure
future customer loyalty, a business must aim to surprise and delight customers in the future by continuing to
augment products. For example, the customer receives ongoing image processing software upgrades with
new and useful features.
Potential Product
The inclusion of additional features, benefits, attributes or related services that serve
Augmented Product to differentiate the product from its competitors. For example, the computer comes
pre-loaded with a high-end image processing software for no extra cost or at a
deeply discounted, incremental cost.
Expected Product Warranty

The set of attributes or characteristics that buyers normally expect and agree
Generic Product
to when they purchase a product. For example, the computer is specified to
Quality deliver fast image processing and has a high-resolution, accurate colour
Features screen.
level
Product Core benefit of
support product
Brand
Design name
A version of the product containing only those attributes or characteristics necessary
Packaging for it to function. For example, the need to process digital images could be satisfied
by a generic, low-end, personal computer using free image processing software or a
processing laboratory.
After
Delivery and
Sale service credit
The fundamental need or want that consumers satisfy by consuming the product or
service. For example, the need to process digital images.

Emerson University , Multan, Pakistan - Confidential- Dr. Muhammad Farooq

*Presentation slides are made by Dr. Muhammad Farooq for Business and Management Sciences students of Emerson University Multan, Pakistan
 What is Segmentation?
It refers to splitting up audiences
based on observable, people-based
differences . These qualities include
things like age, Gender, marital status,
family size, occupation, education
level, income, race, nationality and
religion. Segmenting a market
according to demographics is the
most basic form of segmentation

Times Institute, Multan, Pakistan - Confidential- Dr. Muhammad Farooq

*Presentation slides are made by Dr. Muhammad Farooq for Business and Management Sciences students of times institute Multan, Pakistan
 What STP?
Market Segmentation – The division of a market into
different groups of customers with distinctly similar
needs and product/service requirements (Kotler and
Keller, 2015).

Market Targeting – Choosing a segment of a few

segments to serve once segmentation is established.

Market Positioning - The process of finding and

developing product/service differentiation that
deliver the desired customer benefits after a target
segment has been chosen.

Times Institute, Multan, Pakistan - Confidential- Dr. Muhammad Farooq

*Presentation slides are made by Dr. Muhammad Farooq for Business and Management Sciences students of times institute Multan, Pakistan
 STP Process

Price Product

Segmentation Targeting Positioning

Identify meaningful Select which segment(s) Build and improve brand
groups of customers to serve equity to chosen target

Place Promotion

Times Institute, Multan, Pakistan - Confidential- Dr. Muhammad Farooq

*Presentation slides are made by Dr. Muhammad Farooq for Business and Management Sciences students of times institute Multan, Pakistan
 Segmentation of Consumer Markets

•Offer the same products for everyone • Focus on individuals wants and needs
•Engage in mass production, mass distribution • AKA One-to-one marketing and
and mass promotion customized marketing
•Largest potential market which leads to • Seller offer customized product to
economies of scale consumer

Mass Marketing Individual Marketing

•Focus on local consumer groups cities, • Narrowly defined customer group seeking
neighbourhoods and specific stores a distinctive mix of benefits
•Reflects a growing trend – grassroots • Usually divided into sub-segments
marketing • Many online start-ups aimed at niches
• Customers willingly pay a premium

Local Marketing Niche Marketing

Times Institute, Multan, Pakistan - Confidential- Dr. Muhammad Farooq
*Presentation slides are made by Dr. Muhammad Farooq for Business and Management Sciences students of times institute Multan, Pakistan
 Segmentation of Consumer Markets

Segmentation Base Sub-segment Description

Demographic • Easy to measure

Age • Basic categories; child, young adult, adult, older adult
Life-cycle stage • People need different products and services at different stages in their life

Generation • Baby boomers – born in 1946 – 1960s

• Generation X – born from 1960s – 1980s
• Generation Y/ Millennials – born from 1980s to early 2000s
• Generation Z/ Millennium – from 1990s to present years
Gender • Male or Female
Income • Usage of income brackets – divided based on their purchasing power (low
income, middle income, high income)
• Does not always predict the purchase behaviour – more middle market
individuals are buying branded products
Social Class • Useful for segmenting market such as liquor, furniture, financial services, cars,
clothing, hotels and leisure activities

Times Institute, Multan, Pakistan - Confidential- Dr. Muhammad Farooq

*Presentation slides are made by Dr. Muhammad Farooq for Business and Management Sciences students of times institute Multan, Pakistan
 Market Targeting

Identifiable – the characteristics must be clear

Measurable – numerous variable such as psychological

factors are difficult or impossible to measure at present time

Accessible – able to reach and communicate with the target

segment

Substantial (Profitable) – is it large enough to support a

separate marketing programme profitably?

Actionable (Responsive) – identify the right segments that will

respond favourably to marketing programmes designed.

Times Institute, Multan, Pakistan - Confidential- Dr. Muhammad Farooq

*Presentation slides are made by Dr. Muhammad Farooq for Business and Management Sciences students of times institute Multan, Pakistan
 Market Targeting
Full market coverage
•Undifferentiated marketing – one product for all market segments
•Differentiated marketing – different products for several market
segments

Multiple segment specialization

•Selective specialization – select a subset of all possible segments
•Super-segment specialization – companies exploit the similarities
shared by the segments
•Product specialization – makes a certain product that can be sold
to several diverse market segments
•Market specialization – concentrates on serving many needs of a
particular customer group

Times Institute, Multan, Pakistan - Confidential- Dr. Muhammad Farooq

*Presentation slides are made by Dr. Muhammad Farooq for Business and Management Sciences students of times institute Multan, Pakistan
 Market Positioning

An effective brand positioning helps marketers in

clarifying the brand’s essence and establishing
customer-focused value proposition.

To decide on a positioning strategy, marketers must:

• Determine a competitive frame of reference,
• Focus on the appropriate points-of-parity (POPs) and
points-of-difference (PODs),
• Consider a differentiation strategy, and
• Prepare perceptual positioning maps.

Times Institute, Multan, Pakistan - Confidential- Dr. Muhammad Farooq

*Presentation slides are made by Dr. Muhammad Farooq for Business and Management Sciences students of times institute Multan, Pakistan
 Market Positioning Strategy
Differentiation Strategy Description
Product differentiation • Must assess whether the following are unique or can be competitive advantage
• The size, Features of the product, The product performance or quality, The product
performance consistency and The life cycle of the product
Reliability differentiation • How long can the product be used without problems?, Is the product easily repairable?
• The style and design of the product
Personnel differentiation • The 6 characteristics or better-trained personnel to gain competitive advantages are:
• Competence, Courtesy, Credibility, Responsiveness and Communication

Channel differentiation • Ways the firm distributes, sells or offers its products to its customers to gain competitive
advantages.
Image differentiation • Identity – the way a company aims to identify or position itself or its products
• Image – the way the public perceives the company or its products
• Through symbols, signs, logos, colour, sponsorships etc.
• An effective identity achieves certain things:
• It establishes the product’s character and value proposition
• It conveys the character in a distinctive way
• It delivers emotional power beyond a mental image

Times Institute, Multan, Pakistan - Confidential- Dr. Muhammad Farooq

*Presentation slides are made by Dr. Muhammad Farooq for Business and Management Sciences students of times institute Multan, Pakistan
 Developing Positioning Strategy

• Vital – deliver highly valued benefits to consumers

• Distinctive – benefits isn’t offered by other brands or highly distinctive

• Superior – superior compared to the same way of obtaining the same benefit
Criteria to satisfy
when creating
• Communicable – communicable and visible to buyers
differences

• Pre-emptive – cannot be easily copied by competitors

• Affordable – buyers could afford paying a higher price

• Profitable – the difference creates profit for the company

Times Institute, Multan, Pakistan - Confidential- Dr. Muhammad Farooq

*Presentation slides are made by Dr. Muhammad Farooq for Business and Management Sciences students of times institute Multan, Pakistan
 Strategy Can do ineffective in below cases

Under-positioning – market has only a vague idea of the product

Over-positioning – only a narrow group of consumers identify with the

product

Confused positioning – has too many benefits or changes of claim

that confuse the buyers

Doubtful positioning – the product’s claim on features, price or

manufacturer are difficult for the buyers to believe

Times Institute, Multan, Pakistan - Confidential- Dr. Muhammad Farooq

*Presentation slides are made by Dr. Muhammad Farooq for Business and Management Sciences students of times institute Multan, Pakistan
 Thank you!
QNA
Emerson University , Multan, Pakistan - Confidential- Dr. Muhammad Farooq
*Presentation slides are made by Dr. Muhammad Farooq for Business and Management Sciences students of Emerson University Multan, Pakistan