 As-Salaam-Alaikum-Khabad-Uni Hazzat, Wasim As-Sin welcomes you to lecture number five of Marketing for Non-Profit Organizations, MKT 628 at the Virtual University of Pakistan. The topic at hand is Importance of Marketing Mix in NPOs. We as marketing people know very well that marketing is all about exchanges, which means that we pay for a product or service and get something in exchange. And out of that, we get some kind of satisfaction, some kind of economic benefit. some kind of pleasure. And that is what an exchange is all about. And marketing management is the basic technique which is applied to manage those exchanges. We also know that the bedrock of marketing management is application of variables of marketing mix. We keep talking about four Ps and the fact is that these fundamentals are applicable to the marketing management, whether it be the commercial, the marketing area, or it be for nonprofit organizations. The application is as much valid in NPOs as it is on the commercial side. That's one thing that we have to keep in mind. We also know that the application of these four Ps is never equal or uniform. In other words, if we are handling a product development program, may that be a tangible product or a service product, something for NPOs, the application is going to vary in terms of its dimensions, in terms of its degree, in terms of its quantity or size. To give you one example, let me put it this way, that a marketing program can be very rich in terms of a communication campaign that is needed in order to support a product or a product program. Because you need to publicize what the product is all about and you need to educate the market and therefore it can be communications heavy. Conversely, there could be a marketing program which is distribution intensive. You need to have so many distribution points because you want to have a widespread outreach and for that you need distribution all over the market. The market could be a country, the market could be a region, a collection of different countries or a market could be a small city. A marketing program could be rich in terms of exchanges. In other words, you talk about the value of exchange, especially in the context of NPOs, you talk about the sacrifices which the consumers give and you will recall from one of the past lectures that sacrifices are giving up of some kind of attitudes or behavioral patterns or a value system for something which is supposed to be good for you and that is what NPOs do. That is what you see the marketing management of NPOs does. They keep educating you about a certain cause, emphasizing all the time that this is a behavior which if adopted is going to be beneficial for you and the society at large. And therefore we can summarize that the application of these four Ps, whether it is on the commercial side or on the NPOs side is not going to be uniform. It is the job of the marketing manager to come up with kind of a recipe just like the savvy or the knowledge of a cook to put together a good recipe consisting of different ingredients. Marketing managers also have to think about the quantity or the dimensions of the size or the degree of these four Ps when it comes to coming up with a program directed toward addressing a social cause. We also know that the good marketing people keep their marketing programs very current. What this means is they reveal or rather attempt to reveal all the time what are the changes that have taken place or are taking place in the environment and in particular the external environment. So keeping in line with the changes that have taken place in the environment, good managers keep their programs current. What this essentially means is they keep the focus on the customer, they give the customer the center stage and giving the customer center stage means they follow his preferences, his attitudes and his value system because only that way they can make programs which are going to be followed by the customer and the implementation of which is going to bring about the desired change to the which the marketing managers could want taken place. There are a couple of factors which are important in order to achieve customer centeredness. The most important thing is the availability of resources. Organizations have got to be rich in terms of human resources and financial resources. They've got to commit all these resources in order to implement their programs and since the programs are going to revolve around the customer, they're going to demand a high level of professionalization when it comes to committing resources. NPO's have got to be very frugal and pragmatic when they prioritize their resources because a major dominant portion of their funding comes from the external sources and therefore there's no question of squandering those resources. This is not to say and to criticize that commercial managers on the commercial side squandered their resources. All I'm saying is that the need to be more pragmatic and circumspect underlined itself more so on this side of the fence than on the commercial side, meaning for NPO's you've got to be even more practical and pragmatic. Once you have committed these resources, NPO's put the program into implementation mode and once you've gotten into that mode, it is going to take a lot of time before the program can be implemented. As a matter of fact, marketing programs on this side of the fence take a longer time and they have a longer gestation period before results can surface than that you see results coming up on the commercial side. Managers and all the stakeholders in the NPO's have got to be very patient. You've got to show a lot of perseverance because there is nothing tangible which you can see immediately after you put the programs into motion. The gestation period between kicking off a program and seeing the results surface takes a lot longer on the NPO's side than on the commercial side because it is a question of changing behaviors and changing well ingrained and established behaviors especially if they are negative behaviors is a tough challenge and it takes a lot of time before you really can get the desired results. So what we have learned during this component of the marketing mix variables is that the four P's are applicable to any NPA to the program as they are valid for a commercial marketing program. It is a question of deciding on part of the marketing manager to what extent those four P's are to be involved in terms of product development which is a social improvement program in terms of an NPO. What is going to be the distribution setup? Are you going to have laboratories all over the country or dispensaries all over the place or are you going to have medical teams visiting different regions of the country and whether the campaign is going to be communication intensive or you're going to place a lot more emphasis on the value of exchange. Whatever the case may be the importance of application of the variables of marketing mix is as valid in terms of NPO marketing as it is for any other. We're now going to get into the next component of learning which is about organization-centeredness. If customer-centeredness is all about keeping the customer into sharp focus, organization-centeredness is the opposite of that. These organizations do not really give importance to their customer because they think whatever they are addressing, whatever they're doing in terms of developing different social benefit programs are more important than the customer itself and this is where they are mistaken. So these organizations suffer from certain symptoms which marketing managers have to pinpoint and identify in order to make those organizations customer-centered organizations. This is a huge challenge and how they do it is going to be the learning of another component but before I get to that component let me conclude this by saying that organization-centered organizations are the ones that are self-loving and very self-centered and they do not really have customer as someone who drives their programs, who gives initiatives to their programs for whom they have to understand how he thinks and how he acts. If he thinks in a certain way why he thinks that way if he acts in a certain way why he acts that way and that is what marketing managers on the non-profit side have to understand and appreciate in order to come up with programs which are customer-centered for organizations which do not really have this kind of orientation. Let us talk about all those factors which are going to play the role of features or treatment which if given to organization-centered organizations they also can turn themselves into customer-centered organizations. The next component is a comparison of organization-centeredness and customer-centeredness. Since I talked about these two concepts in the previous component I have to really get into detail when it comes to drawing the comparison why is it that organizations which are organization-centered suffer from certain ailments and they show the symptoms of such ailments and why is it that the customer-centered organizations show certain features which make them customer-centered. As a matter of fact the features which customer-centered organizations have can be used as treatments for the ailments the organization-centered organizations suffer from. So in other words whatever is the ailment on the organizational centeredness can be addressed by way of employing the feature which the other organization on the other side of the fence has. There are six major areas which show themselves when it comes to organization-centeredness and similarly there are six areas which are opposite to those and which happen to be the features of customer-centered organizations. The first one on the organization-centeredness is desirability of cause. This basically means over-subscription to the concept that the cause that we are addressing is highly desirable and it is too noble and therefore there is no need for customer-centeredness. I'll talk about this in detail in a little while. The treatment that we really can offer is the feature which a customer-centered organization has and as you can see on the right-hand side of this slide, behavioral bottom line. This basically refers to marketing managers' acuteness and smartness. Let us now get into a comparison between organization-centered organizations and customer-centered organizations. After all, what is it that makes certain organizations organization-centered and certain ones as customer-centered? And we know it by now that those that are customer-centered are better organizations because they are in a better position to satisfy their customers and achieve their missions. We have to keep one thing in mind that in the NPO sector it is all about the mission and it is not other marketing goals like profits and dividends and market shares and so on and so forth. It is the achievement of the mission and customer-centered organizations are the ones who are in a better position to achieve their mission. And from that point of view, the treatment which could be given to those organizations that look upon the cause they are addressing as too desirable or as too highly valuable is about the behavioral bottom line. Behavioral bottom line points toward marketing managers' smartness to look at the behavior of their customers and then make their programs accordingly. The second ailment on the organization-centeredness is what is complained by marketing managers of such organizations as lack of customer knowledge, their ignorance and lack of motivation on their part. The treatment which can be imparted to address this particular ailment is by coming up good communication campaigns and keeping the issues rather simple. The third ailment is about the role of research in the NPO sector. As you can see, such managers give a very minor role to marketing research, whereas marketing people on the other side of the fence put too much reliance on research, which should be the basic infrastructure to develop your programs, which in other words are your products. Number four is the fact that organization-centered entities view marketing only in terms of promotions, whereas the other ones on the other side look at the application of full marketing mix. In other words, they bring into deployment all the variables of marketing mix, which I talked about in one of the learning components a little earlier. Number five is the fact that people on the organization-centered organizations look at the market as one monolithic block. They do not look at the segmentation as the solution to this problem. Rather, they think it is one huge market and they address that market in a very generic way. The sixth one is lack of generic competition. I'll talk about this, why people seem to think that there is no competition when they are out to address certain complex and very sophisticated kind of social programs, but that is for a little later. The organizations that are customer-centered on the other side have a very rich conceptualization of competition. Now, these are the six elements to which one set of organizations suffer from and six features to which the more successful or rather highly successful organizations that have as their prime character. And these are the features which can be used as treatment for those organizations which are ailing. Let us now talk about these features one by one in detail. First of all, I talked about the desirability of costs. What I mean here is that such organizations tag a very high value to the cost they are addressing because they think the normalness of the cost will automatically attract people really around the cost and they will support the program and they will be successful in implementation of that program. And this is a huge misunderstanding because no one has the time and no one has the priority to be attracted to an organization that does not talk with its audience, an organization that does not communicate about the value of exchange and organization that just is withdrawn and only counts on the nobleness of the cost it is addressing. And therefore, there has to be something that marketing managers should do to take care of this problem. The successful organizations always look at the bottom line and the bottom line is looked upon in terms of the behavior. I'm talking about the NPO sector. The NPO sector is all about a behavior change because we mostly talk about social marketing in comparison with the way commercial marketing, which is a different ball game altogether. And therefore, these marketing managers could must know how their customers think and how they act. But once they sense how they think and act, they are in a better position to take care of the value system they have and then they put all that before the mission of the company. This is a statement to be underlined that these marketing managers in successful organizations that are customer centered put everything before the mission of the company. And when I say everything, it means the attitudes, the preferences and the value system of the target market. Once they do that, it sets the stage for making programs that revolve around the customer and not the other way around. So in other words, it is outside an approach and not inside out. The inside approach is the other approach which is displayed by the organizations that suffer from this particular ailment of thinking of themselves as the entities that are doing a noble job. And because of the normalness of that job, all the stakeholders and the target market should be automatically attracted to them. This is not the case. You know why? Because these marketing managers do not realize they have to talk to their target audience at various levels of the marketplace. And when I talk about the target audience, I would like to make one thing clear here that there's a very subtle and fine difference between the target audience and the target market. And this is something that we have to keep in mind, particularly in the context of NPO's. The target market, you see, is the market that you're trying to approach. The market to see that you think should change its behavior. Whereas the target audience also includes all the stakeholders. In the NPO's, could we all know? Could we have to attract funders, the donors? Could we have to talk with public policy makers who are part of the government? Could we are to talk with media as well? Could we have to convince the media that whatever we are doing is not only noble but is going to be followed by a very high level of marketing effectiveness and professionalism. And it is only that professionalism that convinces people of the marketing programs that you put together and those that revolve around the customer all the time. And therefore, this is a misunderstanding on part of the marketing managers of ailing organizations that they do not really have to approach these people. Whereas they must realize that without approaching these people, I mean, all the stakeholders, there is no way that there's going to be a resource attraction for their organization. And unless there is a resource attraction, there is not going to be effective resource allocation. I will give you the one example of this particular phenomenon. And as a matter of fact, I would like to draw your attention to the example that I already have talked about as part of your lecture notes. And since it is an example with the brand name it specifies on the commercial side, I have no intention to talk about that all over again. Let me draw an analogy on the parallel lines of the marketing program undertaken by an NPO in the area of environment protection or preserving the ecology, whatever terminology you might like to give for this particular concept. But the fact remains there is an organization, you are a part of that and you want to help the society or those social activists and social advocates that really want to promote that particular cause. They don't want the trees to be felled. As a matter of fact, they want vegetation to take place the more and more and they want to see growth on that particular front. How do you approach these kind of advocates and activists? And how do you approach funders who are going to offer you their support so that you can make your program implementable and successful? Well, you've got to talk from their perspective. You've got to talk about, see, their value system. You've got to talk about their attitudes. If you think what you are going to talk about is what the organization believes in and since the organization is a very well-meaning organization having a great noble cause, you may not succeed in that particular attempt because you're not putting the preferences of the customer before the mission of the organization. You are working the other way around. You're putting the mission as the prime thing and then the attitudes and preferences and value system of the customer as something secondary to it. That is not the way it is going to work. The example, you are going to kick off an advertising campaign in this particular regard and you talk about a tagline. The tagline is, we know how to save the environment. Now, this is a tagline to which I would leave just for a moment to your imagination whether it falls within the organization-centered side or on the other side, which is customer-centeredness. I think it certainly falls on the side of organization-centeredness because the organization is talking about its own strength. It says it knows how to protect the environment and by saying this, the organization thinks it is going to please all the stakeholders and they will rally around your cause and support it. Whereas, if you talk the other way around by saying we want to help you save the environment, I think it will ring a bell and it will pull the card and it will stir their emotions and they will be more amenable to your cause and they will be supportive and they will come forward with funding and so on and so forth. Once they do all that, you have every chance in the world to come up with a program which is customer-centered and which revolves around a customer. So this is what is meant by the desirability of cause and the behavioral bottom line. You are not to oversubscribe to the cause at hand in which you are addressing, rather you have to look at the behavioral bottom line and then come up with a program which is a true reflection of your customers' attitudes, preferences and value systems. If you think he should change his value system which is a great challenge, then you've got to start from there. The second point is customer ignorance and lack of motivation. Now, this is something which the managers on the side of organization-centeredness complain about. They say their customers do not really have a complete knowledge of the programs they have undertaken despite the fact that they have worked so hard and despite the fact that the program addresses such a noble cause and still customers do not really around with what they are trying to sell or trying to put together toward social welfare improvement. They also complain about the fact that customers do not really feel the kind of motivation they should have in order to respond, not realizing that customers have never been educated about the basic features of the program. And until the time they know what the program is all about and until the time they know what the value exchange is in the context of this particular program, they will not respond to the program, they will keep on showing ignorance and they will not express motivation on their part. But this is something which they have to understand is not going to work. Whereas managers on the other side who are successful, they pay a lot more attention to communication campaigns that bring about the kind of education which their target market and target audience need in order to respond to their respective roles which they play toward making the program a success. Target market by changing their behaviors and overall target audience including stakeholders in terms of supporting the organization and its cause. They do not realize that they've got to sense what exactly is the behavior of the customer in relation to point number one which I talked about just a minute ago. And they do not talk about the value exchange in terms of the benefits which the target market is going to derive. Whether the benefits are going to be emotional or they're going to be religious or psychological or reputational. Some people like reputation and they think they're going to earn a big name if they were to respond to a program but they will not respond until the time they understand what the program is all about. So not only that marketing managers have to come up with effective communication campaigns in order to educate their customers so that later they cannot complain of their ignorance or lack of motivation. They also have to make those campaigns very effective and concise. Keeping them very concise and effective is the name of the game in this age of information overload. Just think of the communications that flow your way, the by way of text messaging and the emails. Just to give you one example. I'm not talking about the traditional integrated marketing communications. I'm just talking about the electronic media and the digital marketing phase which has made the information load unbearable to the fore of marketing people. As a matter of fact, it is a great challenge for the marketing people to kind of go through all that and then extract that part of information which is relevant and which is effective. So by the same token, they've got to communicate with their target audience in a way that it has not looked upon as something which is too heavy, which is the verbose, which is not concise, and which is not to the point. So making your communication campaigns to the point is the name of the game. Only that way your customers are going to feel motivated and they will rally around with your programs. The next point is the role of research. As I talked very briefly while I was showing you that slide, a very minor role is given to the market research, to the by managers who work for the entities that are organization centered. You know why? Because they do not really appreciate the findings which become the basis of effective and powerful to the marketing decisions to the made by effective marketing managers. They think, they know everything. They understand the market. And just based on suppositions and assumptions, they attempt to make their decisions which is a huge misunderstanding and a wrong step on their part. The fact is that in order to make your decisions very effective, you have to give market research a major role. Until the time you give market research a major role, you just cannot understand your market. And until you understand your market, you have no way to segment that market. In other words, you cannot bring about the kind of distinctions which have to be drawn among so many different lines. And this is one of the points which I'm gonna talk about later. But in the context of this particular, the role of research, I would reiterate that there is no way that we really can effectively understand our market until we give market research its due role. The fact of the matter is that market research is the basic foundation and the infrastructure on which could you develop the product. How can you come up with a product which is not backed by the basic understanding of the value system of your customers? And therefore the market research is to be given a very major role. The reason they do not give that major role which is due is the following. They think market research is expensive, it is all statistics, it is number crunching, and it is not really the useful. It is something which is very intrusive, it lets people ask some very intruding questions with the two people in our society in which in the light of certain social norms, the respondents may not give the right answer. And therefore the information that is generated through market research can be erroneous and it can be misleading and misguiding which is not correct. And therefore these marketing managers seem to think that everything is known to them and they do not really have to get into the research exercise. The fact remains that the findings of the market research may bring about a sea change in your thinking and it may change your perspective altogether. What you have been thinking before getting good market research can be the opposite of what you have found out through market research. Let me give you an example of an NPO that is working to stop people from becoming druggies, meaning people who take illicit drugs and you think that they get into this kind of a negative behavior because they want to be in a state of fun, they want to feel ecstatic, but the way they ask the reality is very different. If you carry out market research, you're finding maybe that these people become druggies because they want to stay away from the realities of a very troubled family life. So it is a different perspective altogether. It is not a question of they're having fun or they're feeling ecstatic. It is a question of running away from the harsh reality and your prescription or your treatment or your program with which you were designed for this kind of a noble cause is going to be very different if you were to make it on the basis of fun and ecstasy. In this particular instance, you would like to visit the families of these druggies only because you would like to make sure in the first place that other members within the family or families do not follow suit, do not take the same course and also become druggies in the process. Rather, you would try to do something with the help of those families that not only other members do not follow suit, but also these druggies are also rehabilitated. So just look at the change in perspective after you get into market research. However, for the sake of clarity of the customer's perspective, I would like to pinpoint all those features or rather some of the features which should be highlighted by way of market research. And you will agree with me that you would like to look into things like what are the demographics of the target market and what are the psychographics and what are the psychographic characteristics? In other words, what are the values or what are the lifestyles that cut across the demographic lines? I think that we all understand that psychographics are all about lifestyle and therefore the values which certain people within one group hold very close to their heart could be the values shared by others who belong to another demographic group. So in other words, could the one value could be which is held could be very noble by the group between 18 and 25 years of age, could it may as well be the value or rather it could be the value of those who are between 40 and 60 years. So that is what I mean by cutting across the demographic lines and sharing something on the psychographic side. You would like to know what is the ethnic background and what are the social systems and do those social systems become very overwhelming when they take certain decisions in relation to improvement of social welfare or not? Most probably the answer will be yes, they do, but that is something that has to be found out through the market research in a very structured way. You would like to understand their income, the brackets in terms of their demographics and you would like to understand who is the most influential people within the family and who are other people who have influence in their lives. You would like to know who they socialize with, colleagues, family members, friends, relatives, so on and so forth. You would also like to know what kind of other NPO's have approached that target audience. If somebody else has approached them, you will get a perspective on there is a competition in terms of getting donations and funds. You will have your own particular strategy to raise funds accordingly if you think there is going to be a lot of competition. If there's no competition, you're lucky. You may like to look into things like what kind of behavior they show towards certain issues and how dear those issues are to them or how complacent they are about those issues. Do they really care or they don't care at all? So these are the kind of things which you can only find out through the market research and cannot base on assumptions and casual observation. You know, there can be so many different things which go into the structure of the market research. I have talked about a few factors which will arouse your imagination and you will look into this thing even more deeply. The point here is to emphasize that marketing managers anywhere working for any sector, okay, may that be commercial sector, okay, they're working for a tangible product or the service sector or may that be NPO sector, you must not base your decision making on the basis of assumptions or casual observation. Stop being assumptions. Carry out market research, that's the most important lesson of this learning because until you have carried out market research, you just cannot draw lines to the which define segments until you have the right segments before you, you cannot come up with the right strategy formulation and if you don't have the right strategies in place, I mean, the implementation is gonna go haywire and so on and so forth. You know the kind of complications which you as marketing manager will face. So give marketing research a huge portion of your attention and give it a major role when it comes to putting together the programs. The next is the fact that marketing is viewed by certain marketing managers as just promotions and I think it goes without saying that they are the marketing managers who work on that side which is very organization centered. This thinking cannot be expressed by those who work in organizations that are customer centered. Now looking at the whole marketing effort as just promotions is very myopic. It amounts to taking a view of marketing which is kind of very brief, which is shortened, which is abbreviated and truncated and just looking at a couple of fliers or brochures with which the company has put together or an advertising campaign with which the organization has kept off thinking that you are done with all the marketing effort is not the right thinking. I think just a little while ago I talked about the importance of application of variables of marketing mix. It has to be all the four piece because the working in coordination with each other to come up with a very comprehensive program and to come up with a program which is complete because which is not abbreviated and it is the interplay of all those variables because which you are masters of I must think that way. I would like to draw your attention to the fact that the weight given to all those variables differs in terms of the character and features of the social program that you undertake but the fact remains that those variables have got to be employed when it comes to putting together your marketing effort. How can you expect your donors to come forward and make donations until the time that you have points of distribution? So this is one example of talking about different piece. If you are a blood collection agency and you want people to come forward and donate blood you have to have different dispensaries or different points at various hospitals because your blood is collected. So that creates your distribution network and the people have got to be educated about that network through a program which effectively communicates what those points are all about and why you are collecting that blood. The conclusion here is that we as marketing managers have got to use all the variables of marketing mix and it has to be the interplay of all those variables as the coordinator parts. It just cannot be just one variable at the cost of others. The meaning all the variables have to be put together and we also know that the different weights are given to different variables when it comes to making one certain program. Let us move on to the next point which is about the market being a monolithic block. I did touch upon this and this is a misunderstanding on part of those marketing managers who are organization centered that they look upon the market as one huge monolithic block. They either do not have the competence or the willingness. I would say the more so willingness and less competence to look at the market that way because they either do not have the resources or the support of the people who really matter toward making the programs successful. In other words, in these kind of organizations generally marketing people do not seem to have support from the board of directors or other stakeholders and they come up with strategies which are very generic in nature. They do not really want to take any risks to have strategies which are very creative and you can have creative strategies only if you have segmented the market. If you have drawn certain distinctive lines through that huge mask which is known as one market and then come up with strategies which are tailored for every particular group and every particular group is a segment. You divide segments into sub-segments and this is kind of a philosophy which we all know from our basic course of marketing management. So the point here is that these managers have very over simplified kind of a view of the marketplace and they do not want to go through the challenge of looking at the market as something which is a collection of diverse characteristics and features. In terms of demographics and psychographics and all kinds of different values. The ones that you have done that you are into the area of segmentation and segmentation is something which can be taken as the treatment for this particular element. Markets are segmented by drawing those lines which I talked about just a while ago that you draw those distinctions among different groups because different groups share so many different things and those different things present themselves in terms of different kinds of values or different kinds of benefits and different kinds of demographics. And these are the three areas of the meaning with the values, demographics and benefits with which Lady Foundation for the overall macro segments I would say. And these segments can then further be divided and subdivided into sub segments or sub sub segments. It all depends on the program. It all depends on the issue, the complexity to which characterizes the issue and the sophistication which you want to bring into the program to address that complexity. So it is a very comprehensive exercise and without having gone into the exercise of segmentation there is just no way that you can make your marketing programs effective. Let me now take you to a slide which explains the whole concept graphically. As you can see from this presentation of segmentation we have common features among segments and the segments meaning the main segments or the macro segments which I referred to earlier are by way of shared values, demographics and benefits. Let's talk about shared values first of all. Shared values can be divided into different sub segments. Why? Because there are different people who look at the values in so many different perspectives. They have their own points of view. There's a group of people who look at the whole thing in terms of social responsibility. They think that supporting the cause and working for the cause amounts to fulfilling a certain social responsibility which should be carried out by every sensitive citizen. So that becomes one segment. The other segment is or the sub-segment so to say is that beliefs in religious responsibility. I mean there is a group of people that thinks that fulfilling responsibilities in the lines of religious tenets and principles is something that has to be carried out by all the citizens. So this is a shared value. And then you see that we have people who work for their self-image and sociopolitical clogged. However selfish it may sound but the fact remains they are working for the cause and they are a different distinct group and they have different psychographics and therefore they have to be treated, they have to be dealt with in a separate way. And when I talk about that separate way it means you have to have a separate set of strategies in order to approach these people and a separate set of tactical executions that really are compatible with their psychographics. Let us now get on to the next segment which is all about demographics because marketing people do like to divide the market in terms of demographics and they do that by way of age and gender whether by income and material status whether by the kind of jobs they are doing and religion. And then you can also have a crisscross of these demographics with other sub-segments in other areas. And I leave that to your imagination to think about what will happen if a certain group or sub-group within the demographics opt for social responsibility and if a sub-group within the demographics opt for another sub-segment undershared values with which is self-image. You definitely would like to have two different sets of strategies and that is the essence of segmentation. Talking about the third main segment which is benefits meaning marketing people dividing the market in terms of benefits as one major segment. This can be subdivided into pleasure and satisfaction, achievement and economic benefit. Here we can bring in the concept of the value of exchange. You know the marketing people have got to educate their people in terms of that value. What is it to see that they pay in terms of cost and the cost is paid to the buy changing their behavior and what is the benefit they get in return? That benefit could be some kind of pleasure or satisfaction or it could be a certain achievement or it could be an economic benefit. So whatever it is the market is divided into these sub-segments. Now the listing that I have shown you is not exhaustive. This is just an example that you as marketing people while dealing with one particular practical problem or a real life situation or a situation in which you're writing a term paper by the midterm that you can get into so many different sub-segments if you think that makes sense. Now the question is what kind of segmentation is going to make sense? Okay, let me talk about that. From this discussion we can summarize that in order for segments and sub-segments to be effective and cohesive they've got to be small because the smaller is the segment the more distinctive it is. The more distinctive it is the more cohesive it is. That's what it means. And cohesiveness is the name of the game. When a segment is very cohesive it means they share a lot of values. And when they share a particular set of values it means they are a cohesive lot, a monolithic cohesive lot. And then to seek the one set of strategies and execution is going to work for that particular sub-segment. This also can be explained like the following way that this segment or sub-segment does not really have any overflows into another sub-segment. Or hazy boundaries or overlaps. So what I'm saying is for a segment to be effective, to be impactful, it has to be rather small. It has to be the one which is very cohesive. It has to be the one which works within your limited means because if you unnecessarily expand the segment it increases all the costs. Starting with market research. If you are trying to approach people with so many different values at the same time it is going to create not only confusion but also escalate your costs. So for a segment to be effective and impactful it has also to be small because it is manageable. Not only cohesive but also manageable. The last and the sixth point of comparison between organization-centered organizations and customer-centered organizations is what they call lack of generic competition. Now this is a mindset of those marketing managers who work for organizations that offer a very highly specialized service. For example, service in the area of cancer care, kidney transplants, heart care and so on and so forth. These managers are the simple thing. They are offering a service which happens to be very complicated and which is very sophisticated and therefore they are putting together programs which are second to none and therefore there's no competition. They don't really have to talk with a customer and that creates a great gulf between these organizations and their customers because they lose the customer perspective. Carrying out research in areas which are very highly specialized is one thing and it is very noble. It is really praiseworthy but the fact is if they are not in touch with reality with those people who are going to get that care, they are creating a gulf between them and themselves and therefore they've got to have a very rich conceptualization as a treatment of this particular ailment as a fix to this particular problem. In other words, they have to have a view of the market which is full of competition. I'm talking about competition here not in terms of the research they are carrying out on the medical side in order to do a great service in the cancer care area or kidney transplant or heart care like I said earlier but competition in the context of donors, competition in the sense of fundraising, you still have to go back to stakeholders or those people who are going to provide you with funds. What's gonna happen if you don't talk with them at all only thinking that this complicated and sophisticated research sets you apart from the rest of the crowd and you don't really have to talk with the crowd, you don't really have to be a part of that crowd. You still have to go back to all those stakeholders who really matter towards your success and this is kind of a thinking which marketing managers have to develop in terms of having a very rich conceptualization of competition. You must look at other NPO's with what they are doing and how they generate funds. You are not up against an organization which also is into similar kind of medical research. You are up against all those noble causes that need funding and therefore you are approaching those stakeholders that provide you with funds. So be careful and be very vigilant. Keep in view a very rich conceptualization of the marketplace. Thanks very much for your patience. This is all about this component. I'll see you in the next video. Bye. Bye.