1 Nature & Content of Marketing Plan

Sub-Plan 1: Baseline Research

Sub-Plan 2: Technical Plan

Sub-Plan 3: Organizational Plan

Sub-plan 4: Contingency Plan

2 Sub-Plan 1: Baseline
Research

 Survey of product demand

 Consumer behaviour
 Market segmentation
 Competitive pricing
 Customer service
Sub-Plan 2: Technical Plan
 Advertising
 Branding
 Packaging
 Sales incentives
 Quality control
 Product line
 Consumer awareness
 3
Sub-Plan 3:Organizational Plan

 Distribution
 Regulation
 Managerial infrastructure
 MIS
 Public relation
 4
Sub-plan 4: Contingency Plan

 Market expansion
 New products
 Additional alternative resources
 Risk management
 Diversification
 5
Scope Of Marketing
Planning Activities
Long Term Short Term
Diagnosis  External planning
 Goal planning
Objectives
 Optimization
Strategy planning
Tactics
Control
 6
Importance Of Marketing Planning
 To reduce future uncertainty
 Help in management by objective
 Economic in operation
 Helpful in co-ordination
 Customer’s wants satisfaction
 Performance standards
 7
Marketing mix
Marketing Environment
External uncontrollable forces

External partially controllable forces

Internal controllable forces

 9
External uncontrollable forces
 Demography
 Economic environment
 Social & cultural environment
 Political & legal forces
 Technology
 Competition
 Ecology (nature)
 Customer demand
 10
External partially controllable forces
 Customers or Markets

 Suppliers

 Corporate resources

 Marketing mix components

 11
Internal controllable forces
 Men
 Money
 Machinery
 Material
 Management
 12
Marketing Research

Definition:
It is systematic gathering , recording
& analysis of data about problem
relating to the marketing of goods &
services.
13
Objectives of marketing research
 To know who buy the firms product
 To find out the impact of promotional
efforts
 To know customer response
 To forecast sales
 To study goodwill of the firm
 To define present market situation
 To set up a plan
 14
Importance & Benefits Of Marketing
Research

 Production of new items

 New uses of products
 Valuable information about customers
 Selection of channel of distribution
 Knowledge about demand
 Discovery of potential markets
 Existence in competitive situation
 15
 Marketing research process
1 2
RESEARCH SITUATION PRELIMINARY
A PURPOSE ANALYSIS INVESTIGATION

3 4
DATA RESEARCH SOURCES OF
B COLLECTION DESIGN DATA
5 6
DATA
C DATA REPORT
PROCESSING ANALYSIS PREPARATION

7
D APPLICATION RECOMMENDATION
INVOLEMENT FOLLOW-UP
Limitations of marketing research
 Lack of qualified & experienced
personnel
 Limitation of money
 Insufficient time for conducting MR
 Determining proper sample size
 Changes in human tendencies
Main Areas Of Research in Marketing
Field

BRAND
PACKAGE PRICE

PRODUCT CHANNELS
MARKETING RESEARCH

1. SURVEY

2. EXPERIMENT PHYSIC
PERSONAL3. OBSERVATION AL
SETTING DISTRIB
UTION
SALES
PROMOTION ADVERTIS
ING
SAMPLING
A sample is a selection of units from the entire group
called the population or universe of interest.

A sampling plan must indicate:

• Sampling unit

• Sampling size

• Sampling procedure

• Sampling media
Types of Samples

 Simple Random Sample

 Stratified Random Sample
 Area Sample
 Quota Sample
Questionnaire
General rules:
• Ques should be short simple & easy
• It must explain the purpose of inquiry
• There should be no misleading or
ambiguous questions
• Develop a logical sequence in
questionnaires
Methods of data collection
PRIMARY DATA SECONDARY DATA
 SURVEY PUBLISHED SURVEY OF
• Mail or postal MARKET

• Personal interview GENERAL LIBRARY

• Telephone survey Govt. PUBLICATION & REPORT

 PANEL RESEARCH ALL ADVERTISING MEDIA
 OBSERVATION UNIVERSITIES
APPROACH
 EXPERIMENTAL INTERNAL SOCRCES
RESEARCH TRADE ASSOCIATION
 Demand Forecasting
MARKET DEMAND

MARKET POTENTIAL SALES POTENTIAL

TOTAL Mktg EFFORTS OF

PURCHASING ENVIRONMENTAL ALL Orgns OFFERING
POWER VARIABLE THE PRODUCT

Ability to buy Willingness to

buy
 Demand measurement

Market Demand Company Demand

Market Market Company sales Company

potential forecast potential sales forecast
Market Segmentation
Market segmentation is the
subdividing of market into
homogeneous sub-sections of
customers where any sub-section
may conceivably be selected as a
market target to be with a distinct
marketing mix.
Types Of Market Segmentation
 Territorial segmentation
 Demographic segmentation
 Life style segmentation
 Product segmentation
 Qualitative segmentation
MARKET SEGMENTATION PROCESS
ANALYSIS OF CUSTOMER NEEDS

ANALYSIS OF CUSTOMER CHARACTERISTICS

DIVIDE CUSTOMER INTO SUITABLE SEGMENTS

APPLY DIFFERENT MARKETING MIX FOR DIFFERENT SEGMENTS

FEEDBACK

SELECT THE HIGHER POTENTIAL SEGMENT

 Indian examples of various market
segments
1. Single segment •Woodland shoes
concentration •Cellular phone

2. Selective specialization DENTA cream tooth powder

(Dabur)

3.Market specialization Sultan chand & sons (books

covering all types of student needs,
schools, colleges & institutions)

4.Product specialization •Mahindra & Mahindra jeeps

•Bajaj Auto
5.Full coverage Pepsi, Titan, Bata
Importance of market segmentation

 Proper attention to particular area

 Formulate marketing programs
 Select channel of distribution
 Understand competition
 Design marketing mix
Market Targeting

The firm has to evaluate the

various segments & decide how
many & which one to target.
5 Patterns Of Target Market Selection

• Single segment concentration

• Selective specialization
• Product specialization
• Market specialization
• Full market coverage
Buying Behaviour

INFORMATION SEARCH

EVALUATION OF ALTERNATIVES

PURCHASE INTENTION

PURCHASE DECISION

POST PURCHASE BEHAVIOUR

 Social & Cultural Influences On
Buying Behaviour

 Family
 Reference groups
 Social class
 culture
External & internal influences shaping
consumer purchase decision
PRODUCT MANAGEMENT

A product is anything that can be

offered a market for attention,
acquisition, use or consumption that
might satisfy a want or need. It
includes physical objects, services,
persons, places organization & ideas.
Product Classification
Product

Consumer goods Industrial goods

• Convenience goods • Raw material
• Shopping goods • Equipments
• Specialty goods • Fabricated material
• Operating supplies
Various product line policies &
strategies
 Product line contraction
 Product line expansion
 Trading up & trading down
 Changing models of the existing
product
 Quality variation
 Test marketing
Product life cycle

Saturation
Sales-volume

tu rity De
c lin
ma e

th

ob
ow
gr

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n
io

esl
ct

ce
du

nc
tro

e
In

Time
New Product Planning
IDEA GENERATION

SCREENING

BUSINESS ANALYSIS

PRODUCT DEVELOPMENT

TEST MARKETING

COMMERCIALISATION
BRANDING
Brand name is a part of a brand consisting of a
word, letter, group of words or letters
comprising a name which is intended to
identify the goods or services of seller & to
differentiate them from those of competitor.
Branding is the management process by which a
product is branded, covering various activities
such as giving a brand name to a product,
designing a brand mark and establishing &
popularizing it.
Reasons For Branding
 Useful in sales promotion
 Useful in easy advertisement &
publication
 Increase in sales
 Attract immediate attention of buyers
 Ensure standard quality & satisfaction
of buyers
Types Of Brands
 Individual Brand:
 Family brand
 Company brand
 Combination brand
 Private of middlemen’s brand
Kinds of Brand Name
 Descriptive Name

 Suggestive Name

 Arbitrary Name

 Coined Name
PACKAGING
It is the general group of activities in
product planning which involve
designing & producing the container
or wrapper for a product.
Funs of packaging
 It is an advertising medium
 Encourages repurchase
 Creates products image
 Enables easy display
 Protects the content
 Becomes easy to identify
 Provides convenience
 Helps memory & recognition
Kinds Of Packaging
 A consumer package

 A family package

 Re-use package

 Multiple packages
Pricing Strategy
Price may be define as the exchange of goods & services in
terms of money.

Objectives Of Pricing:
• To maximize profit
• To stabilize price
• Competitive situation
• Capturing the market
• Ability to pay
• Long-run welfare of the firm
• Resource mobilization
• Target return on investment
New Product Planning
MARKET SEGMENTATION

ESTIMATE OF TOTAL DEMAND

MARKET SHARE

DESIGNING THE MARKETING MIX

ESTIMATE OF TOTAL COST

SELECTING PRICING POLICY

DETERMING PRICING STRATEGIES

DEVELOPING PRICE STRUCTURE

PRICING POLICIES
 If there is competition, each marketer
chooses among the 3 alternatives
• Price in line (pricing at the market)
• Market plus (pricing above the market)
• Market minus (pricing below the market)
 One price vs. variable price policy
 Cost plus or mark-up pricing
Cost plus or mark-up pricing:
It is based on the seller’s per unit cost of the
product plus an additional margin of profit.
There are 4 items in determining the sale price:
• Cost of producing/ acquiring goods
• Cost of operating/ selling expenses
• Interest/ depreciation
• Expected profit margin- Mark up
• Discount & allowances
Common form of Discount & allowances

 Trade Discount
 Cash Discount
 Quantity Discount
 Seasonal Discount
 Promotional Discount
 Advertising & Display allowances
 Freight Allowance
 Price leadership: when the leader raises
or lowers the price, all others usually follow
the leader.

 Psychological pricing: such a pricing

strategy is based on the belief that a buyer
is mentally prepared to pay a little less
than a round figure.

 Charging what the traffic will bear: It

points out demand price. It is usually
adopted by doctors, lawyers, CA’s.
 Premium pricing: It is mix of what the
traffic will bear idea & the value for money.

 Break even analysis & pricing: BEA is a

managerial tool that emphasizes the
relationship among decision variables such as
price, costs & volume of sales.

 Break even point: BEP is that at which sales

revenue is just equal to total costs i.e. the firm
has neither gains nor losses.
Unit 7: Distribution Strategy

Channel of distribution is a path

traced in the direct or indirect
transfer of the title to a product as it
moves from a producer to ultimate
consumers or industrial users.
Objectives of channel of distribution

 To ensure availability of product

 To develop efficiency
 To have effective & efficient
distribution system
 To make your product, readily,
regularly, equitably & in a fresh form
Types of channel of distribution
PRODUCER

Agent
wholesaler Agent

wholesaler
retailer

retailer retailer
retailer

C O N S UM E R
MANUFACTURERS

AGENT/
MIDDLEMEN
AGENT/
WHOLESALER
MIDDLEMEN

WHOLESALER

INDSTRIAL USERS
FACTORS AFFECTING THE CHOICE OF
CHANNEL OF DISTRIBUTION

1. Product characteristics
• Purchase frequency
• Perish ability
• Weight
• Standardize or ordered product
2. Market factors or consumer factors
• Consumer
• Number of purchaser
• Geographic distribution
• Size of orders
• Customer buying habits
3. Company or enterprise factors
• Financial resources
• Size of the company
• Attitudes of company executives
• Marketing policies
4. Middle men considerations
• Services provided by middlemen
• Attitude of middlemen
• Availability of middlemen
5. Environmental factors
• Legal restrictions
• Social & ethical consideration
Wholesaler

Wholesaler buy & resale product to

retailers & other merchants & to
industrial, institutional & commercial
users, but do not sell to ultimate
consumers.
Functions of wholesalers
 Assembling
 Warehousing
 Transport
 Financing
 Grading & packaging
 Pricing
 Risk assuming
Retailer

A retailer is a merchant whose main

business is selling directly to the
ultimate consumers.
Functions of retailer
 Provide personal services to all
 Provide 2 way information
 Facilitate standardization & grading
 Physical movement & storage of goods
 Assemble goods for ready supply to buyers
 Extend credit facility
 Create demand by window display etc
 Undertake sales promotion activity
 Assume risk
Unit:7 Marketing Communication
ADVERTISING
It consist of all the activities in
presenting to a group a non-personal
presentation & promotion of ideas,
goods or services by an identified
sponsor.
Objectives of advertising
 To increase sales
 To encourage potential customers
 To create awareness
 To open door for sales
 To introduce price deal
 To increase market share
 To enter into new market
 To remind users
 To compete
 To secure leadership
 To reduce personal selling expenses
 To improve morale of dealers & salesmen
 To stabilize firms business
 To increase % of profit
 To announce trade result
 To attract investors
 To announce the location of stockists
Kinds of advertising
1. Product advertising
Primary adverting
•
Selective/ competitive advertising:
•
This Happens in the growing stage of lifecycle

2. Institutional advertising
This is done to create goodwill for firm
e.g. Videocon, Godrej etc
3. Commercial Advertising
• Trade advertising
• Industrial advertising
• Professional advertising
• Farm advertising

4. Non-commercial Advertising

5. National & Local Advertising

Selection of Advertising Media
1. Objective of Advertising
2. Media Circulation
3. The Class of people
4. Business Unit
5. Message to be sent
6. The extent of Competition
7. Cost of space
8. Characteristics of Product
9. Nature of Market
10.Position of Product in Market
Kinds Of Media
1. Indoor Advertising
• Press media:
a. News paper
b. Magazine
• Radio
• Television
• Film
2. Outdoor Advertising
• Mural (poster)
• Advertising boards
• Vehicular
• Painted display
• Traveling display
• Electric display
• Sky adverting
• Handbills (leaflets)
• Sandwich men
3. Direct Advertising
• Sales letters
• Circular letters
• Booklets & catalogues
• Folders
• Package inserts
• Store publications
4. Promotional Advertising
• Window Display
• Interior Display
• Show rooms
• exhibition
SALES PROMOTION
It is an organized effort applied to the
selling job to secure the greatest
effectiveness for dealers help.
Objectives of sales promotion
1. To increase buying response
2. To increase sales efforts of dealers
3. To attract new customers
4. To inform public
5. To capture market share
6. To create favorable attitude
7. To meet competition
8. To boost off season sales
9. To keep memory alive
 Kinds of sales promotion

Sales promotion

Consumer
sales Dealer sales Sales force
promotion promotion promotion
Consumer sales promotion
a. Sampling
b. Coupons
c. Demonstration
d. Contests
e. Money refund offers
f. Premium offer (temp price reduction)
g. Price off
h. Consumer sweepstakes (lucky draw)
i. Buy back allowance
j. Free trials
Dealer sales promotion
a. Buying allowance
b. Merchandise allowance
c. Price deals
d. Co-operative advertising
e. Dealer’s sales contest
f. Dealer’s listed promotion
g. Dealer’s gift
Sales force promotion
a. Bonus to sales force
b. Sales force contest
c. Salesmen meetings & conferences
PUBLIC RELATION
It involves a variety of
programs designed to promote
or protect a company’s image
or its individuals products.
Public relation department perform the
following 5 activities:
1. Press relation
2. Product publicity
3. Corporate publicity
4. Lobbying
5. counseling
Public relations can contribute
to the following objectives:
 Building awareness- bring attention to a
product.

 Build credibility- by communicating the

messaged in a editorial context.

 Stimulate the sales force & dealers-

stories about a new product before it is
launched will help the sales force & sell it to
retailers.
Direct Marketing (channelless
retailing)

Under direct marketing advertising,

sales promotion & personal selling are
compressed to induce sale without
the help of any middleman traders.
Major direct marketing
methods:
1. Mail order sale using direct mail or
catalogue (eg.Lakme)
2. Telemarketing
3. Marketing through electronic
media (radio, TV)
4. Vending machines
5. In-home selling (eg. Nutrela)
Advertising of direct marketing
 Direct marketing can focus on
selected target market
 Marketer can contact customer
without any wait
 It is convenient for customer
 Low cost
 Less capital required
Disadvantages
 It affects consumer privacy
 Goods can not be inspected prior to
purchase