Professional Documents
Culture Documents
Senior
Other
Management
Departments
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Services
Communications
Channels
Integrated
Marketing
Internal
Marketing
Holistic
Marketing
Socially
Responsible
Marketing
Ethics Environment
Legal
Relationship
Marketing
Community
Customers
Channel Partners
SELLING
STARTING
POINT
MEANS
ENDS
MARKETING
PRODUCT
CUSTOMER NEEDS
AGGRESSIVE
SELLING &
PROMOTION
SUPERFLUOUS
SELLING
PROFITS THRU
SALES VOLUME
PROFITABILITY
THROUGH
CUSTOMER
SATISFACTION
WHAT IS MARKETING
MARKETERS TASK
MARKETING
PRODUCTS
SERVICES
PERSONS
PLACES
ACTIVITIES
IDEAS
Product
Product variety
Quality
Design
Features
Brand name
Packaging
Sizes
Services
Warranties
Returns
Target market
Price
List Price
Discounts
Allowances
Payment period
Credit terms
Promotion
Sales promotion
Advertising
Sales force
Public relations
Direct marketing
Place
Channels
Coverage
Assortments(mixture)
Locations
Inventory
Transport
11
MARKETING MIX - 7 PS
PRODUCT
PRICE
PLACE
PROMOTION
PEOPLE
PACE (PROCESS)
PROOF OF PERFORMANCE
CHOICE OF MARKETING MIX DEPENDS ON TARGET MARKET &
POSITIONING
Place
Promotion
Price
13
People
Physical evidence
Process
- Employees
Recruiting
Training
Motivation
Rewards
Teamwork
- Customers
Education
Training
Facility design
- Flow of activities
Equipment
Standardized
Signage
Customized
Employees dress
- Number of steps
- Other tangibles
Simple
Reports
Complex
Business cards
- Customer involvement
Statements
Guarantees
14
= EXPECTATIONS
OK / SATISFIED
PERCEIVED PERFORMANCE
UNHAPPY
< EXPECTATIONS
DISSATISFIED/
PERCEIVED PERFORMANCE
> EXPECTATIONS
DELIGHTED
Prospects
Disqualified
Prospects
First-time
customers
Repeat
customers
Clients
Members
Inactive of
Ex-customers
Advocates
Partners
18
TOTAL CUSTOMER
VALUE
IMAGE
CUSTOMER
DELIVERED VALUE
MONETARY VALUE
TIME COST
ENERGY COST
PSYCHIC COST
TOTAL CUSTOMER
COST
PRIMARY ACTIVITIES
Inbound Logistics
Operations
Outbound Logistics
Marketing and Sales
Service
SUPPORT ACTIVITIES
Procurement
Technology development
Human resource Management
Firm Infrastructure
23
MEDIUM
MARGIN
LOW
MARGIN
Many
customers/
distributors
Accounta
ble
Reactive
Basic or
reactive
Medium
number of
customers/
distributors
Few customers
/ distributors
Proactive
Accounta
ble
Reactive
Partnershi
p
Proactive
Accounta
ble
COST OF ACQUISITION
TOTAL COST
TOTAL SALES
EXPENSES)
2. AVERAGE NUMBER OF SALES CALLS
CALLS
TO CONVERT AVERAGE PROSPECT
NEW
TOTAL SALES
TOTAL NO. OF
TO CUSTOMER
CUSTOMERS
3. COST OF ATTRACTING NEW CUSTOMER = 2 X 1
CUSTOMER / PRODUCT
PROFITABILITY ANALYSIS
Produc
ts
P1
C1
C3
+
P2
P3
P4
Custome
rs
C2
+
Highly profitable
product
Profitable product
+
Highprofit
custome
r
Mixedbag
custom
er
Losing product
Losing
custome
r
31
I. External
Awareness
II. Internal
Awareness of goals
Commitment to goals
Resource adequacy
Customer satisfaction
Staffing/skill levels
Distribution/availability
Desire to learn
Willingness to change
Perceived quality/esteem
Freedom to fail
Loyalty/retention
Autonomy
32
33
STRATEGIC PLANNING
STRATEGIC PLANNING
2.
3.
Implementing
Corporate planning
Organizing
Division planning
Business planning
Product planning
Controlling
Measuring Results
Diagnosing results
Implementing
Taking corrective
action
4X
0.1X
Dogs
0.2 X
Cash Cow
0.5 X
0.4X
0.3 X
Question Marks
1X
8%
6%
4%
2%
Stars
2X
1.5 X
20%
18%
16%
14%
12%
10%
10 X
40
1.
5.00
Strong
Medium
Weak
High
Hydraulic Joints
pumps
Aerospace
fittings
Mediu
m
3.67 Clutch
es
Fuel
Pumps
Flexible
2.33
diaphragms
Low
MARK
ET AT
TRAC
TIVE
NESS
(a) Classification
BUSINESS STRENGTH
1.00
5.00
Relief
values
3.67
2.33
1.00
43
High
Mediu
m
Low
ATTR
ACTI
VENE
SS
(B)
Strategies
BUSINESS
STRENGTH
BUILD SELECTIVELY
INVEST TO BUILD
Specialize around limited
PROTECT POSITION
Challenge for
strength.
leadership.
Concentrate effort on
Reinforce vulnerable Withdraw if indications o
sustainable growth are
maintaining strength.
areas
lacking.
SELECTIVITY /
BUILD SELECTIVELY
LIMITED EXPANSION
Invest heavily in most MANAG FOR EARNING
OR HARVEST
Protect existing program.
attractive segments.
Look for ways to expand
Concentrate investments
Build up ability to counter
without high risk;otherwise
in segments where
competition.
minimize investment and
Emphasize productivity profitability is good and
rationalize operations.
by raising productivity. risks are relatively low.
GROWTH STRATEGIES
Current Product
Current
Markets
New
Markets
New Product
2.
Market(Diversification
development
Strategy)
strategy
47
1.
BUSINESS MISSION
2.
SWOT ANALYSIS
3.
GOAL FORMULATION
4.
STRATEGY FORMULATION
5.
PROGRAM FORMULATION
6.
IMPLEMENTATION
7.
50
GOAL FORMULATION
STRATEGY FORMULATION
STRATEGIC ALTERNATIVES
Long -term
profits
Growth in
sales or market
share
Market
Development
Market
Penetration
New
segments
Existing
Customers
Convert
nonusers
Competitors
customers
New product
developments
Efficiency,
short-run profits
Decrease
inputs
Increase
outputs
Reduce
costs
Increase
price
Improve
asset
utilization
Improve
sales mix
53
MARKETING PROCESS
Involves
1.
2.
3.
4.
TO,
1.
2.
3.
Establish objectives
4.
5.
6.
7.
II.
III.
IV.
Objectives
V.
Marketing strategy
VI.
Action programs
VII.
VIII.
Controls
1.
Speed of planning
2.
3.
4.
Structure
5.
Length of plan
6.
Frequency of planning
7.
8.
9.
MARKETING ENVIRONMENT
MARKETING ENVIRONMENT
I.
MARKETING ENVIRONMENT
II.
ACTORS - (MICROENVIRONMENT)
A) COMPANY
B) SUPPLIERS
C) MARKETING INTERMEDIARIES
D) CUSTOMERS
E) COMPETITORS
F) PUBLIC - ASCI, CONSUMER ACTION GROUP
CONSUMER BEHAVIOUR
7 Os
FRAMEWORK
Marketing stimuli
Other stimuli
Product
Economic
Price
Technological
Place
Political
Promotion
Cultural
Buyers
Buyers
characteristics
Decision
Process
Cultural
Social
Personal
Psychological
Buyers decisions
Product choice
Brand choice
Dealer choice
Purchase timing
Purchase amount
Buying roles
Buying types
Buying Stages
CULTURAL
SOCIAL
REFERENCE
CULTURE
GROUP
FAMILY
SUBCULTURE
SOCIAL CLASS
ROLES AND
STATUSES
PERSONAL
AGE AND LIFE
CYCLE STAGE
OCCUPATION
PSYCHOLOGICAL
MOTIVATION
PERCEPTION
ECONOMIC
CIRCUMSTANCES LEARNING
LIFESTYLE
BELIEFS AND
PERSONALITY
ATTITUDES
AND SELFCONCEPT
BUYER
BUYING ROLES
INITIATOR
INFLUENCER
DECIDER
PURCHASER
USER
High
Involvement
Difference
between
brands
perceived
COMPLEX
VARIETY
SEEKING
DISSONANCE
Difference
between
brands not
perceived
Low
Involvement
WB
A
HABITUAL
REDUCING
B
P
A
New B
WB
A
PROBLEM RECOGNITION
PERSONAL SOURCES
COMMERCIAL SOURCES
PUBLIC SOURCES
EXPERIENTIAL SOURCES
TOTAL SET
AWARENESS SET
CONSIDERATION SET
CHOICE SET
PURCHASE DECISION
POST-PURCHASE BEHAVIOUR
1)
Introspective method Marketers
think how
they would act if they
were consumers
2)
Retrospective
method
Ask
consumers who have bought to recall the
event
3)
Prospective method Ask prospective
consumers who plan to buy to think
aloud.
4)
Prescriptive method Ask consumers
ideal way.
74
COMPENSATORY MODEL
EXPECTANCY VALUE MODEL
IDEAL BRAND MODEL
NON-COMPENSATORY MODEL
CONJUNCTIVE MODEL
DISJUNCTIVE MODEL
LEXI COGRAPHIC MODEL
CAR
ENGINE
EXTERIORSPRICE MILEAGE
CAPACITY
WTS.
0.4
FORD ESCORT
0.2
10
0.3
OPEL ASTRA
7.4
HONDA CITY
10
7.7
CIELO
4.8
0.1
8.2
PERCEIVED
VALUES
PERCEIVED RISK
FINANCIAL
PHYSICAL
SOCIAL
PERSONAL
COMPETITION
79
PORTERS MODEL
Potential entrants
(Threat of
mobility)
Suppliers
(Supplier
power)
Industry
competitors
(Segment rivalry)
Buyers
(Buyer
power)
Substitutes
(Threat of
substitutes)
81
Identifying Competition
Identifying Competition
Contd of Slide .
COMPETITION
WHAT DO YOU NEED TO KNOW
WHO ARE OUR COMPETITORS - IDENTIFY &
SELECT
WHAT ARE THEIR OBJECTIVES
WHAT ARE THEIR STRATEGIES
WHAT ARE THEIR STRENGTHS &
WEAKNESSES
WHAT ARE THEIR REACTION PATTERNS
84
IDENTIFYING COMPETITION
CORRECT DEFINITION IMPORTANT TO
MARKET PLANNING & STRATEGY
KEY QUESTION IS DEGREE EXTENT
BALANCE BETWEEN TOO MANY & TOO FEW
NOT EASY AS EMERGING COMPETITION
WRONG DEFINITION LEADS TO
a) MARKETING MYOPIA
b) AMBIGUITY IN MARKET RELATED
STATISTICS
85
IDENTIFYING COMPETITORS
I. INDUSTRY CONCEPT OF COMPETITION II. MARKET CONCEPT OF COMPETITION
86
INDUSTRY CONCEPT OF
COMPETITION
1)Number of sellers and degree of differentiation
a)Pure Monopoly
b)Oligopoly- a small no. of large firms Pure eg
oil,steel Or Differentiated
automobiles,refrigerators
c)Monopolistic competitionMany competitors and
differentiated eg restaurants,beauty parlors
d)Pure competition eg stock market
2)Entry,Mobility,exit barriers
3)Cost structure
4)Degrree of vertical integration
5)Degree of Globalisation
87
Market concept of
competition
Stimulates long run strategic market
planning
Key to identify is mapping
product/market grid
Opens eyes to broader set of actual
& potential competitors
a) Brand
b) Product form competition
c) Category / Generic / Industry
Competition
d) Desire / Budget
88
(Outward)
Desire /
Budget
TIME
t
.6
.2
.2
.2
.3
.4
.1
.2
.3
.5
.1
.1
.5
.3
.1
.4
.5
91
Approa
ch
Level of
Typical Data
Competition
Sources
BrandProdu Gener Budg Primar Second
ct
ic
et
y
ary
Form
Existing definitions
X
Technology substitution
Managerial judgment
X
X
X
X
X
X
X
X
92
Approa
ch
Level of
Typical Data
Competition
Sources
BrandProdu Gener Budg Primar Second
ct
ic
et
y
ary
Form
Product deletion
X
Substitution in use
X
Similarity of consideration
sets
93
IDENTIFYING COMPETITORS
STRATEGIES
A group of firms following same
strategy in given target market is
called a strategic group.
Dimensions include level of
technological
sophistication,geographicalscope,
manufacturing methods,marketing
strategies etc
94
ASSESSING COMPETITORS
CURRENT STRATEGY
1. TARGET MARKET
2. CORE MARKETING STRATEGY
a) POSITIONING
b) DIFFERENTIAL ADVANTAGE
3. MARKETING MIX
95
ASSESSING COMPETITORS
CURRENT OBJECTIVES
growth v/s hold v/s harvest v/s divest.
Short term v/s long term profits, satisfycing v/s
maximizing profits, cash flow,,market
sharegrowth,,technological/,service /cost
leadership
objectives shaped by size, history,
management perspective, financial situation,
place in larger organisation
objectives can be assessed
a) from strategy
b) geographical home of parent
96
ASSESSING COMPETITORS
STRENGTHS & WEAKNESSES
1. THROUGH
- SECONDARY DATA
- PERSONAL EXPERIENCE
- PRIMARY SOURCES (CUSTOMERS, SUPPLIERS, DEALERS)
2. ANALYSIS SHOULD BE FOR BOTH CORPORATE & BRAND
LEVELS
3. ANY INVALID ASSUMPTIONS THAT COMPETITOR IS
MAKING
4. SHARE OF MARKET, MIND, HEART
5. SATISFACTION / DISSATISFACTION AREA
6. COMPARISION VIS-A-VIS OUR BRAND
97
ESTIMATING COMPETITORS
REACTION PATTERNS
DEPENDS ON
a) IMPORTANCE OF BUSINESS OR PRODUCT
b) HOW COMMITTED IS THE COMPETITOR
(PHILOSOPHY, MIND-SET)
c) AGGRESSIVENESS OF MANAGERS
98
ESTIMATING COMPETITORS
REACTION PATTERNS
TYPES OF COMPETITORS
LAID BACK
SELECTIVE
TIGER
STOCHASTIC
99
DESIGNING COMPETITOR
INTELLIGENCE SYSTEM
1. COSTLY SIGNALS
2. CHEAP TALK SIGNALS
PRODUCT MANAGER MUST COLLECT BOTH TYPES
OF INFORMATION BUT BE WARY OF (2)
100
SOURCES OF INFORMATION OF
COMPETITORS
I.
SECONDARY
II. PRIMARY
III. OTHERS
IV. UNETHICAL
101
SELECTING COMPETITION
1. LEVEL
2. SELECTING COMPETITOR FOCUS
CHOOSING WHO TO COMPETE HAS IMPLICATIONS
ON PERFORMING STDS (MARKET SHARE) &
COMPETITIVE STRATEGY
DEPENDS ON
a) TIME HORIZON
b) STAGE OF PLC
c) RATE OF CHANGE OF TECHNOLOGY
102
103
104
COMPETITIVE POSITIONS
DOMINANT-Controls behavior of other
competitors ,wide choice of strategic options
STRONG-can take independent actions and
maintain its long term position
FAVOURABLE-exploitable strength and above
average opportunity to improve position
TENABLE-exists at sufferance of dominant
company and has lesser than average
opportunity to improve position
WEAK-poor performance.must change or exit
NON-VIABLE-poor performance and no
opportunity for improvement
105
I.
II.
106
112
113
114
116
The key idea in successful nichemanship is specialization. Here are some possible niche
roles:
Vertical-level specialist:
Customer-size specialist:
Specific-customer specialist:
Geographic specialist:
Service specialist:
Channel specialist:
117
Marketing Information
System
118
Marketing Information
System
Helps develop &manage information
necessary to conduct marketing
activities.
MARKETING
INFORMATION
MARKETING
ENVIRONMEN
T
MARKETING
INFORMATION SYSTEMS
INTERNAL
REPORTS
SYSTEM
MARKETING
RESEARCH
SYSTEM
Macro
environment
Competition
MARKETING
MANAGERS
Analysis
Planning
Implementatio
n
Target
market
Marketing
channels
MARKETING
INFORMATIO
N
MARKETING
INTELLIGENCE
SYSTEM
ANALYTICAL
MARKETING
SYSTEM
Public
MARKETING DECISIONS &
COMMUNICATIONS
Control
Marketing Information
System
Internal Records System (result data) -
DEFINE THE PROBLEM - not too broad or narrow, watch for symptoms.
CONCLUSIVE
C) CAUSAL
IV. DEVELOP RESEARCH PLAN
A) DATA SOURCES
PRIMARY
B) SAMPLING PLAN
SECONDARY
CENSUS
SAMPLE
SAMPLE UNIT
SAMPLING FRAME
SAMPLE SIZE
SAMPLING
PROCEDURE
A) PROBABILITY
B) NONPROBABILITY
Sampling procedures
A) PROBABILITY SAMPLING :
1. Simple Random Sampling : random selection through
lottery without replacement.
Unrestricted random sampling is with replacement.
2. Systematic Sampling : involved a system of selecting
every nth item in sampling frame after 1st name / unit
is selected at random.
3. Random Route sampling: used for sampling
households, shops etc. An address is selected at
random & every nth address is selected therefrom.
4. Stratified Random Sampling: Population is divided
into mutually exclusive groups & within each group,
units are selected through random methods.
5. Cluster (Area) sampling: The area to be surveyed is
broken into smaller areas. A few of these areas are then
selected by random methods. Every unit or some units
randomly selected may be interviewed in these selected
areas.
SAMPLING PROCEDURES
B) NON - PROBABILITY SAMPLING used when
a) Probability sampling not feasible because
population not known or no suitable sampling
frame.
b)Random sampling too costly & time consuming.
c) When information is exploratory in nature.
SAMPLING PROCEDURES
B) Non probability sample:
1. Convenience sample: The researcher selects
the easiest population members from which to
obtain information.
2 Judgement sample: The researcher uses his/
her judgement to select population members who
are good prospects for accurate information.
3. Quota sample: The researcher decides on
prescribed no. of people in each category (age,
gender, income) & then finds & interviews.
Contact Methods
Contact Methods
TELEPHONE
- Quick
- Interview
should be short.
- Cannot be
personal.
- Not strictly
representative.
- Screening of
calls.
MAIL
Poor
response rate
-
- No chance of
clarification
PERSONAL
- Most versatile
- Non- verbal cues
-Costly
- Bias
- Cold calls
to prevent mall intercept
interviews.
QUESTIONNAIRE
Open - ended
Close - ended
(Useful in
exploratory
research)
(Easy to interpret
and tabulate)
1. Completely unstructured
1. Dichotomous (2 choice)
2. Word association
3. Sentence completion
4. Story completion
5. Picture completion
4. Semantic Differential
6.
5. Importance Scale
6.
Monadic Rating
7.
QUESTIONNAIRE
A QUESTIONABLE QUESTIONNAIRE
Scientific method
Creativity
Multiple methods
Value & cost of information
Look at background - Classic failure of coke. Dont
look at problem in isolation.
Dont give in to temptations of giving
management what they want to hear.
133
Markets
1. Cause related marketing - Social cause, (P & G) ecological cause (Orchid Hotels).
2. Ambush Marketing (Coke 1996 world cup official sponsor, Reebok Atlanta
Olympics 1996).
3. Viral Marketing - hotmail
4. Mousetrapping - (on internet)
5. Guerilla marketing - (unconventional & creative attention grabbing techniques).
E.g. Burger king used McDonalds Ronald.
6. Buzz marketing - By revealing only partial information. (JJKN).
7. Glocalization - McDonalds, Coca-Cola, L & G Sampoorna, Nokia 1100.
8. Permission marketing (Seth Godin)
9. Experience Marketing - Sonys CD stores,Parryware experiencentres, Shoppers
Stop
10.
Collaborative Marketing - design (DC car ) Pricing (Zodiac grill) segmentation
(Dell) Co creation of products- eg starbucks asking customers to create a coffee
and acknowledging customers contribution
Customer Management :
1. Relationship management - Jet airways flying returns,Shoppers stop First
Citizens Club.
2. Affinity group & online communities.
. Product & Branding :
1. Mass customization - e.g. Scorpio, Asian Paints, Dell.
2. Umbrella Branding
. Pricing :
1. Target pricing
2. Announcing price upfront
.
1.
2.
3.
Packaging :
Sachet marketing
Packaging innovations
New inforamtion necessary on packages eg dot to indicate
veg/nonveg,expiry date
. Distribution :
1. Non- traditional methods - Multilevel (Avon , Oriflame ),Party plan
(Tupperware)
2. Organised retail and power shift from manufacturer to retailer
1)
2)
3)
4)
Segment Marketing
Niche Marketing
Local Marketing
Customerization or segments of one
or customized marketing or one to
one marketing.
138
Need-Based Segmentation
Segment Identification
For each needs-based segment, determine which demographics, lifestyles, and usage behaviors make the
segment distinct
and identifiable (actionable).
3.
Segment Attractiveness
Using predetermined segment attractiveness criteria
(such as market growth, competitive intensity, and market
access), determine the overall attractiveness of each
segment.
4.
Segment Profitability
5.
Segment Positioning
For each segment, create a value proposition and
product-price positioning strategy based on that
segments unique
customer needs and characteristics.
6.
7.
Marketing-Mix Strategy
Expand segment positioning strategy to include all
aspects of the marketing mix: product, price, promotion
place.
and
139
RELEVANT
MEASURABLE
SUBSTANTIAL
ACCESSIBLE
ACTIONABLE
STEPS IN SEGMENTATION
MOGRAPHIC
ERATING VARIABLES
RCHASING APPROACHES
PERSONAL CHARACTERISTICS
15. Buyer-seller similarity: Should we serve companies whose
people and values are similar to ours?
16. Attitudes toward risk: Should we serve risk- taking or riskavoiding customers?
17. Loyalty: Should we serve companies that show high loyalty to
their suppliers?
1. SIZE
2. GROWTH
3. STRUCTURAL ATTRACTIVENESS (PORTERS MODEL)
4. OBJECTIVES & RESOURCES
5. ECONOMIES OF SCOPE
WHOLE MARKET
UNDIFFERENTIATED MARKETING
MARKETING MIX 1
SEGMENT 1
SEGMENT 2
SEGMENT 3
DIFFERENTIATED MARKETING
SEGMENT 1
MARKETING MIX
SEGMENT 2
SEGMENT 3
CONCENTRATED MARKETS
Additional Considerations
1)
Segment by segment invasion plans
mega
marketing to counter blocked
markets
2)
Updating segmentation schemes
market
partitioning
3)
Ethical choice of Target markets
4)
Counter segmentation.
149
Involves:
1) Defining the Target Market
2) Competitive frame of reference
3) Points of Parity & Points of
Difference
151
152
slide
Deliverability criteria
STEPS IN POSITIONING
Positioning Strategy
1.
2.
3.
4.
5.
6.
7.
8.
156
PRODUCT REPOSITIONING
158
DIFFERENTIATION VARIABLES
PRODUCT
SERVICES
PERSONNELCHANNEL
IMAGE
Features
Ordering ease
Competence Coverage
Symbol
Performance Delivery
Courtesy
Expertise
Written and
ConformanceInstallation Credibility
Performance audiovisual
Durability
Customer training
Reliability
media
Reliability
Customer consulting Responsiveness
Atmosphere
Reparability Maintenance and communication
Events
Style
repair
Design
Miscellaneous
COMPANY COST
(1)
CUSTOMER VALUE
EFFECTIVENESS
(2)
$200
600
2400
CUSTOMER
(3 = 2/ 1)
2
1
3
160
Technology
Cost
6
Quality
Service
8
8
8
4
5
Affordabili
ty
and speed
(H-M-L)
6
Competitor
s
Ability to
Improve
standing
(H-M-L)
7
Recomme
nded
Action
8 L
L
M Hold
H
M
M Monitor
6 L
L
L Monitor
3 H
H
L Invest
161
5 LEVELS OF PRODUCT
1. CORE BENEFIT
2. BASIC PRODUCT - FEATURES, BENEFITS, DESIGN & STYLE,
PACKAGING, BRAND NAME.
3. EXPECTED PRODUCT - CREATES NO PREFERENCE
4. AUGMENTED PRODUCT - TOTAL CONSUMPTION SYSTEM
5. POTENTIAL PRODUCT
THE 5 LEVELS CONSTITUTE CUSTOMER VALUE HIERARCHY
WITH EACH LEVEL ADDING MORE CUSTOMER VALUE.
CLASSIFICATION OF PRODUCTS-CONSUMER
GOODS
DURABILITY & TANGIBILITY
1. NON-DURABLE GOODS tangible, consumed in few
uses. Many locations, small mark up, heavy
advertising.
2. DURABLE GOODS personal selling, guarantees,
higher margin.
3. SERVICES intangible, variable, credibility of supplier
very important.
SHOPPING HABITS
4. CONVENIENCE GOODS staples, impulse & emergency
goods
5. SHOPPING GOODS comparison shopping
.Homogenous & heterogenous strategies differ.
6. SPECIALITY GOODS goods with unique characteristics
and or brand identification.Location should be
advertised.
Classification Of Products
Medica
l diagn
os i s
Aut
o re
pai
r
Difficult to
evaluate
Root
cana
l
al se
r
Leg
ir
n repa
Televis
io
Child car
e
Haicuts
vice
s
Most services
Vacat
ion
als
rant m
e
Resta
u
Auto
mo
Hous
es
re
Furn
it u
Jewelry
{
{
oth
ing
Easy
to
evalua
te
biles
Most
goods
167
168
BRAND
Brand
170
BRANDING DECISIONS
1.
172
1.
2.
3.
Unique, distinctive.
4.
5.
A. ASSOCIATION TEST
B. LEARNING TESTS (PRONOUNCABILITY)
C. MEMORY
D. PREFERENCE
E. GLOBAL REACH
PACKAGING TESTS
1. ENGINEERING
2. VISUAL
3. DEALER & CONSUMER TESTS
BRAND - MEANING
1. ATTRIBUTES
2. BENEFITS - FUNCTIONAL & EMOTIONAL
3. VALUE
4. CULTURE
5. PERSONALITY
6. USER
DEEP V/S SHALLOW BRAND
BRAND ASSOCIATIONS
Product attributes
Intangibles
Country/geographic area
Customer benefits
Competitors
Brand-name
and symbol
Product class
Lifestyle/personality Celebrity/person
Relative price
Use/application
User/customer
CONDITIONAL
VALUE
SOCIAL
VALUE
BRAND CHOICE
EMOTIONAL
VALUE
EPISTEMIC
VALUE
1. BRAND AWARENESS
2. PERCEIVED BRAND QUALITY AND FUNCTIONALITY
3. POSITIVE BRAND MENTAL & EMOTIONAL ASSOCIATIONS
4. BRAND LOYALTY
5. OTHER ASSETS - PATENTS, TRADEMARKS ,CHANNEL
RELATIONSHIPS
1.
PROTECTION
2.
ADVERTISING VALUE
3.
CONVENIENCE TO CONSUMERS
4.
BENEFIT TO RETAILERS
5.
AFTER-USE VALUE
6.
IDENTIFICATION
7.
INFORMATION
181
LANGUAGE
2.
COLOUR
3.
SIZE
4.
CLIMATE
5.
6.
7.
ACCEPTED NORMS
8.
9.
TRENDS IN PACKAGING
182
PACKAGING
1.
PRIMARY
2.
SECONDARY
3.
SHIPPING
DECISIONS
4.
5.
6.
7.
Pricing methods
Cost based
Customer based
Competitor based
DISTRIBUTION
189
CHANNEL LEVELS
- Door to door
Intermediaries
No. of Intermediaries
Intensive,selective exclusive
Types of intermediaries eg for
cellphones
INTRODUCTION TO INTEGRATED
MARKETING COMMUNICATIONS
by AAAA
a concept of marketing
communications planning that recognizes
the added value of a comprehensive plan
that evaluates the strategic roles of a
variety of communications disciplines-for
example, general advertising, direct
response, sales promotion and public
relations-and combines these disciplines
to provide clarity, consistency, and
maximum communications impact
through the seamless integration of
discrete messages
SALES
PROMOTION
Print and
broadcast ads
Packagingouter
Packaging inserts
Motion pictures
Brochures &
booklets
Posters and
leaflets
Directories
Reprints of ads
Billboards
Display signs
Point-of-purchase
displays
Audio-visual
material
Symbols and
logos
Videotapes
Contests,
games,
sweepstakes,
lotteries
Premiums and
gifts
Sampling
Fairs & trade
shows
Exhibits
Demonstrations
Coupons
Rebates
Low-interest
financing
Entertainment
Trade-in
allowances
Continuity
programs
Tie-ins
PUBLIC
RELATION
S
Press kits
Speeches
Seminars
Annual
reports
Charitable
donations
Sponsorshi
ps
Publications
Community
relations
Lobbying
Identity
media
Company
magazine
Events
PERSONAL
SELLING
DIRECT
MARKETING
Sales
presentations
Sales
meetings
Incentive
programs
Samples
Fairs and
trade shows
Catalogs
Mailings
Telemarketin
g
Electronic
shopping
TV shopping
Fax mail
E-mail
Voice mail
PROMOTIONAL TOOLS
UNDERSTANDING UNIQUE CHARACTERISTICS AND COSTS OF
EACH
1. ADVERTISING Strategic and long term, most economical
form of consumer contact, transforms products into brands.
Persuasive, expressive public
presentation hence perceived as legitimate but impersonal .
2. SALES PROMOTION Short term, tactical
Creates quick response but not effective in building
long-run brand preference.
3. PUBLIC RELATIONS & PUBLICITY High credibility,
dramatization, catch buyers off guard.
4. PERSONAL SELLING Useful in later stages but long-term
cost commitment.
5. DIRECT MARKETING Customized, interactive, secrecy.
6. MERCHANDISING or Point of Purchase activity for traffic
building in outlets especially self-service outlets
PROMOTIONAL TOOLS
199
PLC PHASES
1. INTRODUCTION
2. GROWTH
3. MATURITY
4. DECLINE
200
Pric
e
Hig
h
Low
Hig
h
Rapidskimming
strategy
Slowskimming
strategy
Rapidpenetratio
n strategy
Slowpenetratio
n strategy
Low
202
203
MATURITY PHASE
204
205
MATURITY PHASE
1. MARKET MODIFICATION
VOLUME = NO. OF BRAND USERS X USAGE PER USER
a) INCREASING USERS
CONVERT NON-USERS
ENTER NEW MARKET SEGMENTS
SNATCH COMPETITORS CUSTOMERS
b) INCREASING USAGE
MORE FREQUENT USE
MORE USAGE PER OCCASION
NEW AND MORE VARIED USES
2. PRODUCT MODIFICATION
3. MARKETING MIX MODIFICATION
206
REJUVENATION
DEVELOP AND QUALIFY MAJOR PRODUCT
IMPROVEMENT;
REPOSITION PRODUCT VIA ADVERTISING;
ACHIEVE NEW DISTRIBUTION OUTLETS;
ACHIEVE CONSUMER TRIAL AND CONVICTION;
AND
ATTRACT NEW USERS AND NEW USES.
207
DECLINE PHASE
RETARDING ATTRITION IN USER BASE;
ATTRACTING BARGAIN BUYERS;
RESTRICTING PRODUCT LINE;
REDUCING PRODUCT COSTS;
RETARDING DISTRIBUTION LOSSES;
MAXIMISING IMMEDIATE PROFITS
208
209
210
S
a
l
e
s
Introductio
n
Growth
Maturi
ty
Declin
e
Time
211
Characteristics
Sales
sales
Costs
Profits
Low sales
Rapidly rising
sales
High cost
per
customer
Negative
Rising profits
Customers Innovators
Competitor
Few
s
Early adopters
Growing number
Marketing Objectives
Declining profits
Declining number
Reduce
Create product
Maximize market
Maximize profit while
awareness and trial share
defending market share expenditure
212
and
Strategies
Product
Price
Offer product
Diversify brands
extensions, service, and models
Offer a basic product
warranty
Price to penetrate
Charge cost-plus
market
Build selective
Distributi
Distribution
on
Build intensive
distribution
Price to match or
Best competitors
Build more
intensive
Distribution
Build product
Build awareness and
awareness among
interest in the mass Stress brand
Advertisi
early adopters and
differences and
Market
ng
dealers
Benefits
Sales
Promotio
Reduce to take
Use heavy sales
advantage of heavy
promotion to entice
consumer demand Increase to
trial
encourage
Brand switching
Phase out
weak
items
Cut price
Go selective:
Phase out
unprofitable
Outlets
Reduce to
level
Needed to
retain
Reduce
to
Hard-core
minimal
loyals
level
213
Innovators
2.5%
Early
Early
Adopters Majori
13.5%
ty
34%
Late
Majority
34%
Laggards
16%
Adopter Categories
ADOPTER
DESCRIPTIONRELATIVE PERCENTAGE
CATEGORY POPULATION WITHIN THE
THAT EVENTUALLY
ADOPTS
Innovators
Venturesome - very eager to try new Ideas
acceptable if risk is daring; more 2.5%
cosmopolite social relationships;
communicates with other innovators.
Early Adopters
Respect - more integrated into the local
social system; the persons to check with 13.5%
before adopting a new idea; category contains
greatest number of opinion leaders; are role
models.
Early Majority deliberate - adopt new ideas just prior to the
average time; seldom hold leadership positions;
34.0
deliberate for some time before adopting.
Late Majority Skeptical- adopt new ideas just after the average
time; adopting may be both an economic necessity 34.0
and a reaction to peer pressures;innovations
approached cautiously.
Laggards
Traditional - the last people to adopt an innovation;
most localite in outlook; oriented to the past; 16.0
suspicious of the new.
215
216
217
Market Demand
218
219
Company Demand
Company demand is companys estimated share of market
demand at
alternative levels of company marketing effort in a given time
period. This
depends on size & effectiveness of marketing expenditure
relative to
competitors.
Company sales forecast is expected level of company sales
based on chosen
marketing plan and an assumed marketing environment.
220
221
a)
b)
2)
3)
a)
b)
223
NATIONAL
BPI
ESTIMATED
SALES
(BASED ON ACTUAL
SALES
BPI)
100
2,00,000
2,00,000
CDI
-
MUMBAI
14
28,000
56,000
200
14,000
42,000
300
10,000
10,000
100
2,000
1,000
BANGALORE
DELHI
CALCUTTA
50
225
BPI
NATIONAL
100
ESTIMATED
SALES
(BASED ON ACTUAL
SALES
BPI)
60,000
30,000
MUMBAI
BDI
-
14
4,200
8,400
200
2,100
4,200
200
1,500
2,250
150
300
300
100
BANGALORE
DELHI
CALCUTTA
226
Time series
2)
3)
227
b)
c)
228
Methods
1)
2)
3)
4)
Past-sales analysis
a)
Time Series break down past sales into trend, cycle, seasonal
& erratic & project into future.
b)
c)
d)
5)
Organizational Buying
Behavior
231
Organizational buying
behaviour
1.
2.
3.
4.
5.
Fewer buyers
Larger buyers
Close supplier-customer relationship - Customization
Geographically oriented buyers
Derived demand -business marketer must closely monitor
buying patterns of ultimate consumers.
6. Inelastic demand - in short run as producer cannot make quick
changes in production methods, also small percentage of
items total cost.
7. Fluctuating demand - given 10% increase in consumer
demand can cause 200% increase in business demand.
8. Professional purchasing - Policies, constraints, requirements.
9. Several buying influences - buying committees
10. Direct purchasing
11. Leasing - e.g. Heavy construction equipment, computers, etc.
12. Reciprocity - Chemical manufacturer & Paper manufacturer
Buying Situations
1.
2.
3.
INTERPERSONAL
Interest
Authority
Status
Empathy
Persuasiveness
INDIVIDUAL
Age
Income
Education
BUSINESS
Job position
BUYER
Personality
Risk attitudes
Culture
Trends in Organizational
Buying
Purchasing / Procurement
Process
(Buy Phases)
1.
2.
3.
4.
5.
6.
7.
8.
Performance review
3. Product
Vendor analysis
An example of vendor Analysis
Rating scale
ATTRIBUTES IMPORTANCE (1) (2) (3) (4)
WEIGHTS
POOR
FAIRGOOD
Price
.30
Supplier reputation
.20
Product reliability .30
Service reliability .10
Supplier flexibility .10
EXCELLENT
X
X
X
X
X