MARKETING FOR CUSTOMER VALUE

P R O F. A B I S H E K S A N T H O S H R A J
Recall and demonstrate the key concepts and principles of
marketing for customer value to develop customer-centric
marketing strategies
Design and implement marketing campaigns that effectively
communicate value to the target market
Evaluate the effectiveness of marketing strategies by analyzing
customer feedback, market trends, and competitor activities
Create new marketing plans synthesizing their knowledge of
marketing principles, customer insights, and market data
Assess the marketing issues and providing options for the firm
for solving the issues

Outcome
A teaser of MCV course
 Workshop Mode teaching

Activity Based learning

Field Studies
Course
Pedagogy Classroom discussions

Transparent & ethical marking

 Expectations

Enjoy the Course !!!

Hardcopy textbook (at least one per

team) for every class

Contribute to your team

Technology discipline
Put your brains to work
Grading
parameters

Total Internals– 30 Marks

IA exam – 10 Marks (5+5)

Documentary/Presentation* – 10
Marks
Class Participation* – 5

Attendance– 5
 Seating arrangements would
change based on need

Group discussions require

Group set-up

Assume the role of a

Class business manager/CEO
during the sessions
structure Concept delivery + Group
tasks

Do not miss the classes

Mckinsey insights
 THE
SYLLABUS
MARKETING
Bust the my th
 ?
MAJOR
D E PA RT M E N TS I N
AN
O RG A N I ZAT I O N
the activity, set of institutions, and processes
for

creating, communicating, delivering, and Link to

4 Ps
exchanging

offering that have value for customers, clients,

partners and society at large
What can be marketed? What are the offerings?
 OFFERING
▪ Anything that can be offered to a market to satisfy a want or need or desire, including
- Physical goods
- Services
- Experiences
- Events
- Persons
- Places
- Properties
- Organizations
- Information and
- Ideas
 What
Whatwill
willyou
youdo
doas
as aa company
company ??

Assumption: Customers prefer products that

are affordable and widely available

Example: Model T
 What will you do as a company ?

Assumption: Customers prioritize superior

product features, quality, and performance.

Example: Kodak
 What will you do as a company ?

Assumption: Customers won’t buy enough

unless persuaded through intensive selling
and advertising efforts.
 What will you do as a company ?

Assumption: Success is determined by

understanding and meeting customer needs
better than competitors.
 What will you do as a company ?

Consumers increasingly value ethical

practices, sustainability, and social
responsibility.
 Role of Marketing in an Organization
(How it evolved?)
Production Concept Sell what is produced

Innovate and Sell what is produced

Product Concept
Aggressively push what is produced
Selling Concept
Produce the right product for your customer
Marketing concept
Business is defined as customer-satisfying process
Market-Value concept
The Golden
Circle
 Classroom task

In teams of 5, Come up with your own business idea.

 Marketing Mix task

• What are you selling?(what is your product offering?) What

are its features and benefits?
• What is the price of the offering? Why?
• Where/How will the product be sold?
• How will you promote the product? What marketing tactics
will you employ?
Marketing Mix
4Ps / 7Ps
 Marketing Mix

4 Ps (Marketing Mix) 7Ps

• Product • People
• Price • Process
• Promotion
(communication)
• Physical evidence
• Place (distribution)
Marketing
planning and Corporate Business unit Offering
management planning planning planning
MARKET ANALYSIS AND
SELECTION
 Marketing Environment

•Controllable (Mission,
Internal Vision, Assets, resources,
etc)
•Uncontrollable (Micro &
External
Macro)
 Micro & Macro Environment

Macro environment (PESTEL) Micro environment (5Cs)

• Political • Customers (B2B or B2C)
• Economical • Collaborators
• Sociocultural • Competitors
• Technological • Company (Business unit)
• Ecological/Environmental • Context
• Legal
Source: [Link]
indigo-spicejet-often-report-losses/
• In 2013, Novartis lost its patent battle over the cancer drug Glivec in India.
• The Supreme Court ruled that the drug did not meet the innovation standards required
for a patent.
• This allowed Indian pharmaceutical companies like Cipla and Sun Pharma to produce
cheaper generic versions, benefiting consumers but impacting multinational drug
companies’ profitability.
Consumer Protection Laws and the FMCG
Sector
 PESTEL TASK
P E S T E L A N A LY S I S F O R Y O U R F I R M S
 Tools for Market Analysis

PESTEL SWOT Porter’s 5 force

BCG
Matrix/Porter’s …..
generic
 Vodafone Idea is struggling with
declining market share, rising
debt, and intense competition
from Jio and Airtel. The company
must make strategic decisions to
stabilize its position and regain
profitability

As Executives of Vodafone Idea, Provide

1. Strategic Recommendations: Clear and actionable strategies based on your analysis of the five forces.
2. Justification: A rationale for each recommendation, supported by the provided data.
3. Potential Risks and Mitigation: Highlight any risks associated with your strategies and how you plan to
address them.
Key Questions to Answer:
How can Vodafone Idea differentiate its services to reduce
competitive rivalry?
What strategies can they adopt to retain customers (reduce
buyer power)?
How can they manage supplier relationships to minimize costs?
Should they invest in partnerships with OTT platforms to mitigate
the threat of substitutes?
How can they attract new customers despite the high barriers to
entry for new players?
 Tasks moving forward

• Marketing Planning and management for the company assigned

• Consumer market analysis for the company assigned

Field Tasks:
• Marketing Planning and consumer market analysis for a small
business in Ananth Nagar
• Documentary initiation
Develop a Marketing Plan
ACTIVITY
 Analysing consumer
markets

• What are the key factors that

influence consumer behaviour?
• What is the role of culture, social
and personal factors in consumer
behaviour?
• Do needs, emotions and memory
influence their behaviour?
How do People buy these?
Segmentation | Target | Positioning
Segment
• Identify distinct groups of buyers who differ in their needs
and wants

Target
• Select one or two segments to enter

Position
• For each target segment, establish, communicate, and deliver
the right benefit(s) for the company’s market offering
 Segmenting Consumer Markets

Demographic Segmentation Behavioural Segmentation

• Age • User status
• Stage in the life cycle • Usage rate
• Gender • Buyer-readiness stage
• Income • Price sensitive
• Loyalty status
Geographic Segmentation • Occasions

• Nations Psychographic Segmentation

• States • Psychological traits
• Regions • Lifestyle
• Cities • Values
What segments
does your
friend fall
under ?
BRANDS FOR THE SEGMENTS

AC TIVIT
Y
 Segments
identified from
field visit
AC TIVIT
Y
 Develop value proposition & Positioning

Value Proposition (An offering can create Positioning

value across 3 domains)
1. Functional Value • Identify Points-of-Difference (PODs) – Attributes
• Performance, reliability, durability, or benefits that differentiate the company’s
compatibility, ease of use, form, style, offering from competitor.
packaging, etc • Points of Parity (POPs) – Attributes or benefit
2. Psychological Value associations that are shared with other brands
• Emotional benefits (joy, pride, status) • Positioning Strategies – Key benefits that makes
customers choose your product
3. Monetary Value
• Grab a perceptual space
• Less price, cash-back offers, low
interest financing, cash prize, etc • Blend both functional and emotional (Head &
Heart)
Types of Positioning & Errors
Branding
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 Types of Brand Positioning Errors

• Over Positioning: When a brand differentiates itself to the extent that its
products only appeal to a section of the target audience due to the over
emphasis of certain aspects of the product.
• Under Positioning: When a brand has failed to communicate a
compelling position due to which consumers are unclear about the key benefits
of their brand.
• Doubtful Positioning: When customers do not believe or accept the
claims of the brand.
• Confused Positioning: When a brand’s positioning efforts result in their
customers having a confused image of the company and/or its products.

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 Types of Brand positioning Strategies
• Competitor Based Positioning: Competitor-based positioning involves
positioning a brand based on how the value of their offerings differentiate with the
offerings of similar brands.
• Value-Based Positioning: This approach to positioning involves positioning
the brand based on the value of their offerings; it places a focus on the quality of a
product in relation to its price.
• Price Positioning: This positioning strategy involves using pricing as a tool to
position the brand. Different prices target different audiences and also significantly
influence demand.
• Leader-Based Positioning: Leader-based brand positioning is a strategy
that involves positioning the brand as market leader within its respective industry.

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 Segmenting Consumer Markets

Demographic Segmentation Behavioural Segmentation

• Age • User status
• Stage in the life cycle • Usage rate
• Gender • Buyer-readiness stage
• Income • Price sensitive
• Loyalty status
Geographic Segmentation • Occasions

• Nations Psychographic Segmentation

• States • Psychological traits
• Regions • Lifestyle
• Cities • Values
 Develop value proposition & Positioning

Value Proposition (An offering can create Positioning

value across 3 domains)
1. Functional Value • Identify Points-of-Difference (PODs) – Attributes
• Performance, reliability, durability, or benefits that differentiate the company’s
compatibility, ease of use, form, style, offering from competitor.
packaging, etc • Points of Parity (POPs) – Attributes or benefit
2. Psychological Value associations that are shared with other brands
• Emotional benefits (joy, pride, status) • Positioning Strategies – Key benefits that makes
customers choose your product
3. Monetary Value
• Grab a perceptual space
• Less price, cash-back offers, low
interest financing, cash prize, etc • Blend both functional and emotional (Head &
Heart)
Positioning through the years – Ads research
AC T I V I T Y
Marketing
planning and Corporate Business unit Offering
management planning planning planning
 Developing a
marketing plan
 The G-STIC
Action-Planning
Flowchart