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MARKETING MANAGEMENT

As per philip kotler,marketing is a societal process by which individuals and groups obtain what they need and want through creating,offering,and freely exchanging products and services of value with others.MARKETING MANAGEMENT As per AMA,marketing is the process of planning and executing the conception,pricing, promotion and

As per AMA,marketing is the process of planning and executing the conception,pricing, promotion and distribution of ideas,goods and services to create exchanges that satisfy individual and organisational goals.obtain what they need and want through creating,offering,and freely exchanging products and services of value with

CORE CONCEPTS OF MARKETING

SEGMENTING, TARGETING & POSITIONING MARKETPLACE, MARKETSPACE,AND METAMARKET MARKETERS AND PROSPECTS NEEDS ,WANTS, AND DESIRES/DEMAND PRODUCT, OFFERING, AND BRAND VALUE AND SATISFACTION EXCHANGE AND TRANSACTIONS RELATIONSHIPS AND NETWORKS

DESIRES/DEMAND PRODUCT, OFFERING, AND BRAND VALUE AND SATISFACTION EXCHANGE AND TRANSACTIONS RELATIONSHIPS AND NETWORKS
DESIRES/DEMAND PRODUCT, OFFERING, AND BRAND VALUE AND SATISFACTION EXCHANGE AND TRANSACTIONS RELATIONSHIPS AND NETWORKS
DESIRES/DEMAND PRODUCT, OFFERING, AND BRAND VALUE AND SATISFACTION EXCHANGE AND TRANSACTIONS RELATIONSHIPS AND NETWORKS
DESIRES/DEMAND PRODUCT, OFFERING, AND BRAND VALUE AND SATISFACTION EXCHANGE AND TRANSACTIONS RELATIONSHIPS AND NETWORKS
DESIRES/DEMAND PRODUCT, OFFERING, AND BRAND VALUE AND SATISFACTION EXCHANGE AND TRANSACTIONS RELATIONSHIPS AND NETWORKS
DESIRES/DEMAND PRODUCT, OFFERING, AND BRAND VALUE AND SATISFACTION EXCHANGE AND TRANSACTIONS RELATIONSHIPS AND NETWORKS
DESIRES/DEMAND PRODUCT, OFFERING, AND BRAND VALUE AND SATISFACTION EXCHANGE AND TRANSACTIONS RELATIONSHIPS AND NETWORKS

CORE CONCEPTS(contd.)

MARKETING CHANNELSCORE CONCEPTS(contd.) SUPPLY CHAIN COMPETITION MARKETING ENVIRONMENT(task env. &broad env.) MARKETING PROGRAM

SUPPLY CHAINCORE CONCEPTS(contd.) MARKETING CHANNELS COMPETITION MARKETING ENVIRONMENT(task env. &broad env.) MARKETING PROGRAM

COMPETITIONCORE CONCEPTS(contd.) MARKETING CHANNELS SUPPLY CHAIN MARKETING ENVIRONMENT(task env. &broad env.) MARKETING PROGRAM

MARKETING ENVIRONMENT(task env. &broad env.)CORE CONCEPTS(contd.) MARKETING CHANNELS SUPPLY CHAIN COMPETITION MARKETING PROGRAM

MARKETING PROGRAMCORE CONCEPTS(contd.) MARKETING CHANNELS SUPPLY CHAIN COMPETITION MARKETING ENVIRONMENT(task env. &broad env.)

Fundamental Principles of Marketing

Customer Value Differentiation Focus
Customer Value
Differentiation
Focus

Major Actors and Forces in the Company’s Marketing Environment

A company’s marketing environment consists of the external actors and forces that affect the company’s ability to develop and maintain successful transactions and relationships with its target customers.

ECONOMIC PHYSICA POLITICAL Competitors L /LEGAL Suppliers Company Marketing Customers intermediaries SOCIO/
ECONOMIC
PHYSICA
POLITICAL
Competitors
L
/LEGAL
Suppliers Company Marketing Customers
intermediaries
SOCIO/
CULTURAL
TECHNO-
Publics
LOGICAL
DEMOGRAPHI
C

Marketing Strategy Planning Process

Narrowing down to focused strategy with screening criteria

Customers

Company

Competitors

S.

W.

O.

T.

Segmentation

& Targeting

Differentiatio

n

& Positioning

Produc

t

Plac

e

Target

Marke

t

Pric

e

Prom

o

External Market Environment

WHAT IS MARKET SEGMENTATION ?

Market segmentation can be defined as the process of dividing a potential market into distinct subsets of consumers with common needs or characteristics

and selecting one or more segments to target with a distinct marketing

mix.

Before the widespread adoption of the marketing concept, the prevailing way of doing business with consumers was through mass marketing --- that is, offering the same product and marketing mix to all consumers. The essence of this strategy was summed up by the entrepreneur Henry Ford, who offered the

Model T automobile to the public --- “ in any color they wanted, as long as it was black.”

suruchi@vsnl.com

MARKET SEGMENTATION BASES AND SELECTED VARIABLES

SEGMENTATION BASE

Geographic Segmentation Region City Size Density of Area Climate Demographic Segmentation Age Sex Martial Status

Income

Education

Occupation

SELECTED SEGMENTATION VARIABLES

North, South, East, West. Major metropolitan areas, small cities,towns Urban, suburban, exurban, rural Temperate, hot, humid

Under 11, 12-17, 18-34, 35-49, 50-64, 65-74, 75+ Male, female Single, married, divorced, lining together, widowed Under $15000,$15000-$24000, $25000-$39999, $40,000-$64,999, $65,000 and over. Some high school, high school graduate, some college, college graduate, postgraduate Professional, blue-collar, white-collar, agricultural

suruchi@vsnl.com

MARKET SEGMENTATION BASES AND SELECTED VARIABLES

SEGMENTATION BASE

PSYCHOLOGICAL

/PSYCHOGRAPHIC

SEGMENTATION

Needs-Motivation

Personality

Perception

Learning-Involvement

Attitudes

Psychographic(Lifestyle)

SOCIOCULTURAL SEGMENTATION

Culture Subculture Religion Race/Ethnicity Social Class Family Lifestyle

SELECTED SEGMENTATION VARIABLES

Shelter, safety, security, affection, sense of self worth Extroverts, introverts, aggressives, compliants Low risk, moderate risk, high risk Low involvement, high involvement Positive attitude, negative attitude Swingers, straights, conservatives, status seekers

American, Italian, Chinese, Mexican Jewish, Catholic, Protestant, other African-American, Caucasian, Oriental, Hispanic Lower, middle, upper Bachelors, young marrieds, empty nesters

suruchi@vsnl.com

Positioning and Differentiation

Performance

Product Differentiation Tools
Product
Differentiation
Tools

Conformance

Design

Features

Form

Style

Reliability

Durability

Repairability

DEMAND STATES

NEGATIVE DEMAND-market dislikes the product.DEMAND STATES NO DEMAND-market not interested in the product. LATENT DEMAND-need not satisfied with existing products.

NO DEMAND-market not interested in the product.DEMAND STATES NEGATIVE DEMAND-market dislikes the product. LATENT DEMAND-need not satisfied with existing products.

LATENT DEMAND-need not satisfied with existing products.the product. NO DEMAND-market not interested in the product. DECLINING DEMAND IRREGULAR DEMAND FULL DEMAND OVERFULL

DECLINING DEMANDLATENT DEMAND-need not satisfied with existing products. IRREGULAR DEMAND FULL DEMAND OVERFULL DEMAND UNWHOLESOME

IRREGULAR DEMANDnot satisfied with existing products. DECLINING DEMAND FULL DEMAND OVERFULL DEMAND UNWHOLESOME DEMAND-e Alcohol

FULL DEMANDnot satisfied with existing products. DECLINING DEMAND IRREGULAR DEMAND OVERFULL DEMAND UNWHOLESOME DEMAND-e Alcohol

OVERFULL DEMANDnot satisfied with existing products. DECLINING DEMAND IRREGULAR DEMAND FULL DEMAND UNWHOLESOME DEMAND-e Alcohol

UNWHOLESOME DEMAND-e

Alcohol

CUSTOMER VALUE

Customers are value maximisers,and they tend to take rational purchase decisions Concept of customer Delivered value/customer perceived value-it is the difference between prospective custmer’s evaluation of all the costs of an offering and the alternatives. Customer delivered value=total customer value-total customer cost. Total customer value-is the percieved monetary value of the bundle of the bundle of economic,functional & psychological benefits that customer expect from a given market offering. Total customer cost-is the bundle of costs,customers expect to incur in evaluating,obtaining,using&disposing off,the given market offering.

Customer satisfaction-S=P-E S=SATISFACTION LEVEL P=PERFORMANCE AS PERCIEVED BY CUSTOMER E=PERFORMANCE AS ALREADY EXPECTED BY THE CUSTOMER.

CONSUMER BUYING BEHAVIOR

Before developing their marketing plans, marketers need to study consumer markets and consumer behavior.CONSUMER BUYING BEHAVIOR In analyzing consumer markets, firms need to research who constitutes the market (occupants),

In analyzing consumer markets, firms need to researchneed to study consumer markets and consumer behavior. who constitutes the market (occupants), what the market

who constitutes the market (occupants), (occupants),

what the market buys (objective), (objective),

who participates in the buying (organization ), (organization),

how the market buys ( operations), (operations),

when the market buys (occasions ), (occasions),

and where the market buys (outlets). (outlets).

CONSUMER BUYING BEHAVIOR

CONSUMER BUYING BEHAVIOR Consumer behavior is influenced by 4 factors: cultural (culture, subculture, social class) social

Consumer behavior is influenced by 4 factors:

cultural(culture, subculture, social class) (culture, subculture, social class)

social(reference groups, family and social roles, status) (reference groups, family and social roles, status)

personal(age, stage in the life cycle, occupation, economic circumstances, lifestyle, personality, self concept) psychological (age, stage in the life cycle, occupation, economic circumstances, lifestyle, personality, self concept) psychological(motivation, learning beliefs, perception, attitudes)

CONSUMER BUYING BEHAVIOR

CONSUMER BUYING BEHAVIOR BUYING ROLES : initiator --a person who first suggests the idea of buying

BUYING ROLES:

initiator--a person who first suggests the idea of buying the product or service --a person who first suggests the idea of buying the product or service

influencer--a person whose views or advice influences the decision --a person whose views or advice influences the decision

decider--a person who decides on any component of a buying decision --a person who decides on any component of a buying decision

buyer--the person who makes the actual purchase --the person who makes the actual purchase

user--a person who consumes the product/service. --a person who consumes the product/service.

CONSUMER BUYING BEHAVIOR

CONSUMER BUYING BEHAVIOR The typical buying process consists of the following sequence of events: problem recognition

The typical buying process consists of the following sequence of events:

problem recognitionbuying process consists of the following sequence of events: information search--personal, commercial, public or

information search--personal, commercial, public or experiential sourcesof the following sequence of events: problem recognition evaluation of alternatives--attribute analysis purchase

evaluation of alternatives--attribute analysisinformation search--personal, commercial, public or experiential sources purchase decision post purchase behavior.

purchase decisioncommercial, public or experiential sources evaluation of alternatives--attribute analysis post purchase behavior.

post purchase behavior.commercial, public or experiential sources evaluation of alternatives--attribute analysis purchase decision

CONCEPT OF VALUE CHAIN

Ways to create more customer value.It is the ability to perform particular activities effectively and the ability to perform certain activities more effectively and to manage the linkages between these activities which are the source of competitive advantage.CONCEPT OF VALUE CHAIN Primary activities-are those which are directly concerned with creation/delivery of product/service

Primary activities-are those which are directly concerned with creation/delivery of product/service e.g. receiving goods,machining,transportation, marketing/sales etc.activities which are the source of competitive advantage. Support activities-are those which help to improve

Support activities-are those which help to improve efficiency/effectiveness of primary activities e.g. procurement of resource inputs,technology developments,infrastructure,HRM etc.concerned with creation/delivery of product/service e.g. receiving goods,machining,transportation, marketing/sales etc.

High Performance Businesses

Figure 3-3: The Generic Value Chain

High Performance Businesses Figure 3-3: The Generic Value Chain

VARIOUS TYPES OF BUYING SITUATIONS

Complex buying situation-purchasing a car, computer, house etc. stress is on pre-purchase councelling.Involvement on marketer’s part is very high because brands differ widely.VARIOUS TYPES OF BUYING SITUATIONS Habitual buying situation-purchasing grocery items,low involvement because brands

Habitual buying situation-purchasing grocery items,low involvement because brands differ marginally marketers job is to make it available easily.marketer’s part is very high because brands differ widely. Dissonace-reducing buying situation-purchasing

Dissonace-reducing buying situation-purchasing carpets,hi-tech electric devices,personal computers etc.High involment is required at post purchase level so as to reduce post purchase dissonance of customers.marginally marketers job is to make it available easily. Variety-seeking buying situation-purchasing

Variety-seeking buying situation-purchasing cookies,perfumes, cosmetics products,clothes,shoes etc.Low involvement.stress is on attracting retailers& customers through attractive offers,prompting them to ‘switch’ brands.computers etc.High involment is required at post purchase level so as to reduce post purchase dissonance

Customer Value

Figure 3-1:

Determinants of Customer Delivered Value

Customer Value Figure 3-1: Determinants of Customer Delivered Value

Relationship Marketing

Figure 3-5: Levels of Relationship Marketing

Relationship Marketing Figure 3-5: Levels of Relationship Marketing

Customer Retention

Customer Retention Reducing customer churn (defection) is highly desirable Define and measure retention rate Identify

Reducing customer churn (defection) is highly desirable

Define and measure retention rateReducing customer churn (defection) is highly desirable Identify causes of attrition Estimate profit lost from

Identify causes of attritionis highly desirable Define and measure retention rate Estimate profit lost from customer defection (customer

Estimate profit lost from customer defection (customer lifetime value)Define and measure retention rate Identify causes of attrition Estimate cost to reduce defection; take appropriate

Estimate cost to reduce defection; take appropriate actionmeasure retention rate Identify causes of attrition Estimate profit lost from customer defection (customer lifetime value)

How and Why Consumers Buy

Influence Factors

How and Why Consumers Buy Influence Factors Cultural Social Personal Psychological Exert broadest and deepest influence

CulturalHow and Why Consumers Buy Influence Factors Social Personal Psychological Exert broadest and deepest influence Culture

SocialHow and Why Consumers Buy Influence Factors Cultural Personal Psychological Exert broadest and deepest influence Culture

PersonalHow and Why Consumers Buy Influence Factors Cultural Social Psychological Exert broadest and deepest influence Culture

PsychologicalWhy Consumers Buy Influence Factors Cultural Social Personal Exert broadest and deepest influence Culture Subculture

Exert broadest and deepest influenceHow and Why Consumers Buy Influence Factors Cultural Social Personal Psychological Culture Subculture Social classes

CultureInfluence Factors Cultural Social Personal Psychological Exert broadest and deepest influence Subculture Social classes

SubcultureBuy Influence Factors Cultural Social Personal Psychological Exert broadest and deepest influence Culture Social classes

Social classesBuy Influence Factors Cultural Social Personal Psychological Exert broadest and deepest influence Culture Subculture

Consumer Buying Decision Process

Marketers Must Identify and Understand:

Who Makes the Buying Decision Types of Buying Decisions Stages in the Buying Process
Who Makes the Buying Decision
Types of Buying Decisions
Stages in the Buying Process

Consumer Buying Decision Process

Understand

Consumer Buying Decision Process Understand Buying roles Buying behavior Buying decision process Initiator Influencer

Buying rolesConsumer Buying Decision Process Understand Buying behavior Buying decision process Initiator Influencer Decider Buyer User

Buying behaviorConsumer Buying Decision Process Understand Buying roles Buying decision process Initiator Influencer Decider Buyer User

Buying decision processConsumer Buying Decision Process Understand Buying roles Buying behavior Initiator Influencer Decider Buyer User

InitiatorBuying Decision Process Understand Buying roles Buying behavior Buying decision process Influencer Decider Buyer User

InfluencerBuying Decision Process Understand Buying roles Buying behavior Buying decision process Initiator Decider Buyer User

DeciderBuying Decision Process Understand Buying roles Buying behavior Buying decision process Initiator Influencer Buyer User

BuyerBuying Decision Process Understand Buying roles Buying behavior Buying decision process Initiator Influencer Decider User

UserBuying Decision Process Understand Buying roles Buying behavior Buying decision process Initiator Influencer Decider Buyer

Consumer Buying Decision Process

Understand

Consumer Buying Decision Process Understand Buying roles Buying behavior Buying decision process Complex buying behavior

Buying rolesConsumer Buying Decision Process Understand Buying behavior Buying decision process Complex buying behavior

Buying behaviorConsumer Buying Decision Process Understand Buying roles Buying decision process Complex buying behavior

Buying decision processDecision Process Understand Buying roles Buying behavior Complex buying behavior Dissonance-reducing buying behavior

Complex buying behavior Dissonance-reducing buying behaviorUnderstand Buying roles Buying behavior Buying decision process Habitual buying behavior Variety-seeking buying behavior

Habitual buying behaviorBuying decision process Complex buying behavior Dissonance-reducing buying behavior Variety-seeking buying behavior

Variety-seeking buying behaviorbehavior Buying decision process Complex buying behavior Dissonance-reducing buying behavior Habitual buying behavior

Consumer Buying Decision Process

Understand

Consumer Buying Decision Process Understand Buying roles Buying behavior Buying decision process Five stages in the

Buying rolesConsumer Buying Decision Process Understand Buying behavior Buying decision process Five stages in the consumer buying

Buying behaviorConsumer Buying Decision Process Understand Buying roles Buying decision process Five stages in the consumer buying

Buying decision processDecision Process Understand Buying roles Buying behavior Five stages in the consumer buying process The amount

Five stages in the consumer buying processBuying roles Buying behavior Buying decision process The amount of time spent in each stage varies

The amount of time spent in each stage varies according to several factorsProcess Understand Buying roles Buying behavior Buying decision process Five stages in the consumer buying process

Consumer Buying Decision Process

Figure 6-2:

Five-Stage Model of the Consumer Buying Process

Consumer Buying Decision Process Figure 6-2: Five-Stage Model of the Consumer Buying Process

Consumer Buying Decision Process

Consumer Buying Decision Process Post-purchase Behavior: Consumers’ expectations are compared to performance

Post-purchase Behavior:

Consumers’ expectations are compared to performanceConsumer Buying Decision Process Post-purchase Behavior: Post-purchase satisfaction influences future behavior Purchasing

Post-purchase satisfaction influences future behaviorBehavior: Consumers’ expectations are compared to performance Purchasing behavior Word-of-mouth communications

Purchasing behaviorare compared to performance Post-purchase satisfaction influences future behavior Word-of-mouth communications

Word-of-mouth communicationsexpectations are compared to performance Post-purchase satisfaction influences future behavior Purchasing behavior

Organizational Buying

Buying Situations

Organizational Buying Buying Situations Straight rebuy Modified rebuy New task Routine reorders from approved vendor list

Straight rebuyOrganizational Buying Buying Situations Modified rebuy New task Routine reorders from approved vendor list Low

Modified rebuyOrganizational Buying Buying Situations Straight rebuy New task Routine reorders from approved vendor list Low

New taskBuying Buying Situations Straight rebuy Modified rebuy Routine reorders from approved vendor list Low involvement,

Routine reorders from approved vendor listBuying Situations Straight rebuy Modified rebuy New task Low involvement, minimal time commitment Example: copier

Low involvement, minimal time commitmentBuying Situations Straight rebuy Modified rebuy New task Routine reorders from approved vendor list Example: copier

Example: copier paper copier paper

Organizational Buying

Buying Situations Straight rebuy Modified rebuy New task
Buying Situations
Straight rebuy
Modified rebuy
New task

Specifications, prices, delivery terms or other aspects require modificationBuying Situations Straight rebuy Modified rebuy New task Moderate level of involvement and time commitment Example:

Moderate level of involvement and time commitmentrebuy New task Specifications, prices, delivery terms or other aspects require modification Example: desktop computers

Example: desktop computers desktop computers

New Product Development

New Product Development What is a “New” Product? New-to-the-world products New product lines Additions to existing

What is a “New” Product?

New-to-the-world productsNew Product Development What is a “New” Product? New product lines Additions to existing product lines

New product linesWhat is a “New” Product? New-to-the-world products Additions to existing product lines Improvements and

Additions to existing product linesProduct? New-to-the-world products New product lines Improvements and revisions of existing products Repositioned

Improvements and revisions of existing productsproducts New product lines Additions to existing product lines Repositioned products Cost reduction products

Repositioned productsproduct lines Additions to existing product lines Improvements and revisions of existing products Cost reduction products

Cost reduction productsproduct lines Additions to existing product lines Improvements and revisions of existing products Repositioned products

Marketing Through the Product Life Cycle

Marketing Through the Product Life Cycle Figure 10-4: Sales and Profit Life Cycles

Figure 10-4:

Sales and Profit Life Cycles

Stages of the Product Life Cycle

PLC Stages

Stages of the Product Life Cycle PLC Stages Introduction Growth Maturity Decline Low sales High costs

IntroductionStages of the Product Life Cycle PLC Stages Growth Maturity Decline Low sales High costs per

GrowthStages of the Product Life Cycle PLC Stages Introduction Maturity Decline Low sales High costs per

Maturityof the Product Life Cycle PLC Stages Introduction Growth Decline Low sales High costs per customer

DeclineProduct Life Cycle PLC Stages Introduction Growth Maturity Low sales High costs per customer Negative profits

Low salesLife Cycle PLC Stages Introduction Growth Maturity Decline High costs per customer Negative profits Innovator customers

High costs per customerLife Cycle PLC Stages Introduction Growth Maturity Decline Low sales Negative profits Innovator customers Few competitors

Negative profitsPLC Stages Introduction Growth Maturity Decline Low sales High costs per customer Innovator customers Few competitors

Innovator customersCycle PLC Stages Introduction Growth Maturity Decline Low sales High costs per customer Negative profits Few

Few competitorsPLC Stages Introduction Growth Maturity Decline Low sales High costs per customer Negative profits Innovator customers

Stages of the Product Life Cycle

PLC Stages

Stages of the Product Life Cycle PLC Stages Introduction Growth Maturity Decline Rising sales Average costs

IntroductionStages of the Product Life Cycle PLC Stages Growth Maturity Decline Rising sales Average costs Rising

GrowthStages of the Product Life Cycle PLC Stages Introduction Maturity Decline Rising sales Average costs Rising

Maturityof the Product Life Cycle PLC Stages Introduction Growth Decline Rising sales Average costs Rising profits

DeclineProduct Life Cycle PLC Stages Introduction Growth Maturity Rising sales Average costs Rising profits Early adopters

Rising salesLife Cycle PLC Stages Introduction Growth Maturity Decline Average costs Rising profits Early adopters customers

Average costsPLC Stages Introduction Growth Maturity Decline Rising sales Rising profits Early adopters customers Growing competition

Rising profitsPLC Stages Introduction Growth Maturity Decline Rising sales Average costs Early adopters customers Growing competition

Early adopters customersLife Cycle PLC Stages Introduction Growth Maturity Decline Rising sales Average costs Rising profits Growing competition

Growing competitionCycle PLC Stages Introduction Growth Maturity Decline Rising sales Average costs Rising profits Early adopters customers

Stages of the Product Life Cycle

PLC Stages

Stages of the Product Life Cycle PLC Stages Introduction Growth Maturity Decline Peak sales Low costs

IntroductionStages of the Product Life Cycle PLC Stages Growth Maturity Decline Peak sales Low costs High

GrowthStages of the Product Life Cycle PLC Stages Introduction Maturity Decline Peak sales Low costs High

Maturityof the Product Life Cycle PLC Stages Introduction Growth Decline Peak sales Low costs High profits

DeclineProduct Life Cycle PLC Stages Introduction Growth Maturity Peak sales Low costs High profits Middle majority

Peak salesLife Cycle PLC Stages Introduction Growth Maturity Decline Low costs High profits Middle majority customers

Low costsPLC Stages Introduction Growth Maturity Decline Peak sales High profits Middle majority customers Stable/declining

High profitsStages Introduction Growth Maturity Decline Peak sales Low costs Middle majority customers Stable/declining competition

Middle majority customersLife Cycle PLC Stages Introduction Growth Maturity Decline Peak sales Low costs High profits Stable/declining competition

Stable/declining competitionLife Cycle PLC Stages Introduction Growth Maturity Decline Peak sales Low costs High profits Middle majority

Stages of the Product Life Cycle

PLC Stages

Stages of the Product Life Cycle PLC Stages Introduction Growth Maturity Decline Declining sales Low costs

IntroductionStages of the Product Life Cycle PLC Stages Growth Maturity Decline Declining sales Low costs Declining

GrowthStages of the Product Life Cycle PLC Stages Introduction Maturity Decline Declining sales Low costs Declining

Maturityof the Product Life Cycle PLC Stages Introduction Growth Decline Declining sales Low costs Declining profits

DeclineProduct Life Cycle PLC Stages Introduction Growth Maturity Declining sales Low costs Declining profits Laggard

Declining salesLife Cycle PLC Stages Introduction Growth Maturity Decline Low costs Declining profits Laggard customers Declining

Low costsPLC Stages Introduction Growth Maturity Decline Declining sales Declining profits Laggard customers Declining competition

Declining profitsCycle PLC Stages Introduction Growth Maturity Decline Declining sales Low costs Laggard customers Declining competition

Laggard customersCycle PLC Stages Introduction Growth Maturity Decline Declining sales Low costs Declining profits Declining competition

Declining competitionLife Cycle PLC Stages Introduction Growth Maturity Decline Declining sales Low costs Declining profits Laggard customers

Positioning and Differentiation

Positioning and Differentiation Two views of positioning: Ries and Trout: products are positioned in the mind

Two views of positioning:

Ries and Trout: products are positioned in the mind of prospectPositioning and Differentiation Two views of positioning: Treacy and Wiersema: positioning via value disciplines Product

Treacy and Wiersema: positioning via value disciplinesand Trout: products are positioned in the mind of prospect Product leader firm Operationally excellent firm

Product leader firmof prospect Treacy and Wiersema: positioning via value disciplines Operationally excellent firm Customer intimate firm

Operationally excellent firmin the mind of prospect Treacy and Wiersema: positioning via value disciplines Product leader firm Customer

Customer intimate firmmind of prospect Treacy and Wiersema: positioning via value disciplines Product leader firm Operationally excellent firm

Positioning and Differentiation

Differentiated products feature meaningful and valuable differences that distinguish the company’s offering from the competition. products feature meaningful and valuable differences that distinguish the company’s offering from the competition.

Differences are stronger when they are important, distinctive, superior, preemptive, affordable, and profitable.products feature meaningful and valuable differences that distinguish the company’s offering from the competition.

The Product and Product Mix

Product

Classifications

The Product and Product Mix Product Classifications Durability and tangibility Consumer goods Industrial goods Classified

Durability and tangibilityThe Product and Product Mix Product Classifications Consumer goods Industrial goods Classified by shopping habits:

Consumer goodsMix Product Classifications Durability and tangibility Industrial goods Classified by shopping habits: Convenience

Industrial goodsClassifications Durability and tangibility Consumer goods Classified by shopping habits: Convenience goods Shopping

Durability and tangibility Consumer goods Industrial goods Classified by shopping habits: Convenience goods Shopping

Classified by shopping habits:

Convenience goodstangibility Consumer goods Industrial goods Classified by shopping habits: Shopping goods Specialty goods Unsought goods

Shopping goodsConsumer goods Industrial goods Classified by shopping habits: Convenience goods Specialty goods Unsought goods

Specialty goodstangibility Consumer goods Industrial goods Classified by shopping habits: Convenience goods Shopping goods Unsought goods

Unsought goodsConsumer goods Industrial goods Classified by shopping habits: Convenience goods Shopping goods Specialty goods

The Product and Product Mix

Product Mix Decisions

Product Mix Width Product Mix Depth Product Mix Length Product Mix Consistency
Product Mix Width
Product Mix Depth
Product Mix Length
Product Mix Consistency

Product-Line Decisions

Product-line analysis Product-line length Product-Line Modernization, Featuring, and Pruning
Product-line
analysis
Product-line length
Product-Line Modernization,
Featuring, and Pruning

Brand Decisions

Brand Decisions The AMA definition of a brand: “A name, term, sign, symbol, or design, or

The AMA definition of a brand:

“A name, term, sign, symbol, or design, or a combination of these, intended to identify the goods or services of one seller or group of sellers and to differentiate them from the competition.”

Brand Decisions

Levels of Meaning Conveyed by Brands

Attributes Benefits Value User Personality Culture
Attributes
Benefits
Value
User
Personality
Culture

Brand Decisions

Brand equity refers to the positive differential effect that a brand name has on customers. refers to the positive differential effect that a brand name has on customers.

Brand equity:differential effect that a brand name has on customers. is related to many factors. allows for

is related to many factors.effect that a brand name has on customers. Brand equity: allows for reduced marketing costs. is

allows for reduced marketing costs.that a brand name has on customers. Brand equity: is related to many factors. is a

is a major contributor to customer equity.effect that a brand name has on customers. Brand equity: is related to many factors. allows

Corporate and Division Strategic Planning

Corporate and Division Strategic Planning Strategic business units (SBUs) share three characteristics: Single business or

Strategic business units (SBUs) share three characteristics:

Single business or collection of businesses which can be managed separatelyStrategic business units (SBUs) share three characteristics: Has own set of competitors Has manager responsible for

Has own set of competitorsor collection of businesses which can be managed separately Has manager responsible for strategic planning and

Has manager responsible for strategic planning and profitscharacteristics: Single business or collection of businesses which can be managed separately Has own set of

Corporate and Division Strategic Planning

Corporate and Division Strategic Planning Figure 4-2: The Boston Consulting Group’s Growth-Share Matrix

Figure 4-2:

The Boston Consulting Group’s Growth-Share Matrix

Corporate and Division Strategic Planning

Corporate and Division Strategic Planning Figure 4-3 (part 1 of 2): Market-Attractiveness Portfolio Strategies

Figure 4-3 (part 1 of 2):

Market-Attractiveness Portfolio Strategies

Corporate and Division Strategic Planning

Corporate and Division Strategic Planning Figure 4-3 (part 2 of 2): Market-Attractiveness Portfolio Strategies

Figure 4-3 (part 2 of 2):

Market-Attractiveness Portfolio Strategies

Packaging and Labeling

Shipping Package Primary Packaging Package Aspects Secondary Package
Shipping
Package
Primary
Packaging
Package
Aspects
Secondary Package

Packaging and Labeling

Functions of Labeling

Identifies the Product or Brand May Identify Product Grade May Describe the Product May Promote
Identifies the Product or Brand
May Identify Product Grade
May Describe the Product
May Promote the Product

Setting the Price

Pricing Procedure

Setting the Price Pricing Procedure Select pricing objective Determine demand Estimate costs Analyze competition Select

Select pricing objectiveSetting the Price Pricing Procedure Determine demand Estimate costs Analyze competition Select pricing method Select final

Determine demandSetting the Price Pricing Procedure Select pricing objective Estimate costs Analyze competition Select pricing method

Estimate costsPricing Procedure Select pricing objective Determine demand Analyze competition Select pricing method Select final price

Analyze competitionSelect pricing objective Determine demand Estimate costs Select pricing method Select final price Survival Maximize

Select pricing methodDetermine demand Estimate costs Analyze competition Select final price Survival Maximize current profits

Select final priceEstimate costs Analyze competition Select pricing method Survival Maximize current profits Maximize market share

SurvivalAnalyze competition Select pricing method Select final price Maximize current profits Maximize market share Penetration

Maximize current profitsSelect pricing method Select final price Survival Maximize market share Penetration strategy Market skimming

Maximize market sharemethod Select final price Survival Maximize current profits Penetration strategy Market skimming Skimming strategy

Penetration strategySurvival Maximize current profits Maximize market share Market skimming Skimming strategy Product quality leaders

Market skimmingcurrent profits Maximize market share Penetration strategy Skimming strategy Product quality leaders Partial cost

Skimming strategycurrent profits Maximize market share Penetration strategy Market skimming Product quality leaders Partial cost recovery

Product quality leaderscurrent profits Maximize market share Penetration strategy Market skimming Skimming strategy Partial cost recovery

Partial cost recoverycurrent profits Maximize market share Penetration strategy Market skimming Skimming strategy Product quality leaders

Setting the Price

Pricing Procedure

Setting the Price Pricing Procedure Select pricing objective Determine demand Estimate costs Analyze competition Select

Select pricing objectiveSetting the Price Pricing Procedure Determine demand Estimate costs Analyze competition Select pricing method Select final

Determine demandSetting the Price Pricing Procedure Select pricing objective Estimate costs Analyze competition Select pricing method

Estimate costsPricing Procedure Select pricing objective Determine demand Analyze competition Select pricing method Select final price

Analyze competitionSelect pricing objective Determine demand Estimate costs Select pricing method Select final price Understand factors

Select pricing methodDetermine demand Estimate costs Analyze competition Select final price Understand factors that affect price

Select final priceEstimate costs Analyze competition Select pricing method Understand factors that affect price sensitivity Estimate

Understand factors that affect price sensitivityAnalyze competition Select pricing method Select final price Estimate demand curves Understand price elasticity of demand

Estimate demand curvesfinal price Understand factors that affect price sensitivity Understand price elasticity of demand Elasticity Inelasticty

Understand price elasticity of demandmethod Select final price Understand factors that affect price sensitivity Estimate demand curves Elasticity Inelasticty

ElasticityUnderstand factors that affect price sensitivity Estimate demand curves Understand price elasticity of demand Inelasticty

InelastictyUnderstand factors that affect price sensitivity Estimate demand curves Understand price elasticity of demand Elasticity

Setting the Price

Pricing Procedure

Setting the Price Pricing Procedure Select pricing objective Determine demand Estimate costs Analyze competition Select

Select pricing objectiveSetting the Price Pricing Procedure Determine demand Estimate costs Analyze competition Select pricing method Select final

Determine demandSetting the Price Pricing Procedure Select pricing objective Estimate costs Analyze competition Select pricing method

Estimate costsPricing Procedure Select pricing objective Determine demand Analyze competition Select pricing method Select final price

Analyze competitionSelect pricing objective Determine demand Estimate costs Select pricing method Select final price Types of costs

Select pricing methodDetermine demand Estimate costs Analyze competition Select final price Types of costs and levels of production

Select final priceEstimate costs Analyze competition Select pricing method Types of costs and levels of production must be

Types of costs and levels of production must be consideredAnalyze competition Select pricing method Select final price Accumulated production leads to cost reduction via the

Accumulated production leads to cost reduction via the experience curveTypes of costs and levels of production must be considered Differentiated marketing offers create different cost

Differentiated marketing offers create different cost levelscosts and levels of production must be considered Accumulated production leads to cost reduction via the

Setting the Price

Pricing Procedure

Setting the Price Pricing Procedure Select pricing objective Determine demand Estimate costs Analyze competition Select

Select pricing objectiveSetting the Price Pricing Procedure Determine demand Estimate costs Analyze competition Select pricing method Select final

Determine demandSetting the Price Pricing Procedure Select pricing objective Estimate costs Analyze competition Select pricing method

Estimate costsPricing Procedure Select pricing objective Determine demand Analyze competition Select pricing method Select final price

Analyze competitionSelect pricing objective Determine demand Estimate costs Select pricing method Select final price Firms must analyze

Select pricing methodDetermine demand Estimate costs Analyze competition Select final price Firms must analyze the competition with

Select final priceEstimate costs Analyze competition Select pricing method Firms must analyze the competition with respect to: Costs

Firms must analyze the competition with respect to:Analyze competition Select pricing method Select final price Costs Prices Possible price reactions Pricing decisions are

Costsprice Firms must analyze the competition with respect to: Prices Possible price reactions Pricing decisions are

PricesFirms must analyze the competition with respect to: Costs Possible price reactions Pricing decisions are also

Possible price reactionsmust analyze the competition with respect to: Costs Prices Pricing decisions are also influenced by quality

Pricing decisions are also influenced by quality of offering relative to competitionmethod Select final price Firms must analyze the competition with respect to: Costs Prices Possible price

Setting the Price

Pricing Procedure

Setting the Price Pricing Procedure Select pricing objective Determine demand Estimate costs Analyze competition Select

Select pricing objectiveSetting the Price Pricing Procedure Determine demand Estimate costs Analyze competition Select pricing method Select final

Determine demandSetting the Price Pricing Procedure Select pricing objective Estimate costs Analyze competition Select pricing method

Estimate costsPricing Procedure Select pricing objective Determine demand Analyze competition Select pricing method Select final price

Analyze competitionSelect pricing objective Determine demand Estimate costs Select pricing method Select final price Price-setting

Select pricing methodDetermine demand Estimate costs Analyze competition Select final price Price-setting begins with the three

Select final priceEstimate costs Analyze competition Select pricing method Price-setting begins with the three “C’s” Select

Price-setting begins with the three “C’s”Analyze competition Select pricing method Select final price Select method: Markup pricing Target-return pricing

Select method:final price Price-setting begins with the three “C’s” Markup pricing Target-return pricing Perceived-value pricing

Markup pricingbegins with the three “C’s” Select method: Target-return pricing Perceived-value pricing Value pricing

Target-return pricingwith the three “C’s” Select method: Markup pricing Perceived-value pricing Value pricing Going-rate pricing

Perceived-value pricingSelect method: Markup pricing Target-return pricing Value pricing Going-rate pricing Auction-type pricing Group

Value pricingmethod: Markup pricing Target-return pricing Perceived-value pricing Going-rate pricing Auction-type pricing Group pricing

Going-rate pricingmethod: Markup pricing Target-return pricing Perceived-value pricing Value pricing Auction-type pricing Group pricing

Auction-type pricingSelect method: Markup pricing Target-return pricing Perceived-value pricing Value pricing Going-rate pricing Group pricing

Group pricingmethod: Markup pricing Target-return pricing Perceived-value pricing Value pricing Going-rate pricing Auction-type pricing

Setting the Price

Pricing Procedure

Setting the Price Pricing Procedure Select pricing objective Determine demand Estimate costs Analyze competition Select

Select pricing objectiveSetting the Price Pricing Procedure Determine demand Estimate costs Analyze competition Select pricing method Select final

Determine demandSetting the Price Pricing Procedure Select pricing objective Estimate costs Analyze competition Select pricing method

Estimate costsPricing Procedure Select pricing objective Determine demand Analyze competition Select pricing method Select final price

Analyze competitionSelect pricing objective Determine demand Estimate costs Select pricing method Select final price Requires

Select pricing methodDetermine demand Estimate costs Analyze competition Select final price Requires consideration of additional

Select final priceEstimate costs Analyze competition Select pricing method Requires consideration of additional factors: Psychological

Analyze competition Select pricing method Select final price Requires consideration of additional factors: Psychological

Requires consideration of additional factors:

Psychological pricingfinal price Requires consideration of additional factors: Gain-and-risk-sharing pricing Influence of other marketing

Gain-and-risk-sharing pricingconsideration of additional factors: Psychological pricing Influence of other marketing mix variables Company pricing

Influence of other marketing mix variablesfactors: Psychological pricing Gain-and-risk-sharing pricing Company pricing policies Impact of price on other parties

Company pricing policiespricing Gain-and-risk-sharing pricing Influence of other marketing mix variables Impact of price on other parties

Impact of price on other partiesPsychological pricing Gain-and-risk-sharing pricing Influence of other marketing mix variables Company pricing policies

Channel-Design Decisions

Push vs. Pull Strategy Analyzing Consumers’ Desired Service Output Levels Establishing Objectives and Constraints
Push vs. Pull
Strategy
Analyzing Consumers’ Desired
Service Output Levels
Establishing Objectives
and Constraints
Identifying / Evaluating Major
Channel Alternatives

Work Performed by Channels

Figure 14-3:

Consumer and Industrial Marketing Channels

Work Performed by Channels Figure 14-3: Consumer and Industrial Marketing Channels

Channel-Design Decisions

Channel Factors

Channel-Design Decisions Channel Factors Intermediary type Number of intermediaries Terms and responsibilities of

Intermediary typeChannel-Design Decisions Channel Factors Number of intermediaries Terms and responsibilities of intermediaries Exclusive

Number of intermediariesChannel-Design Decisions Channel Factors Intermediary type Terms and responsibilities of intermediaries Exclusive

Terms and responsibilities of intermediariesChannel Factors Intermediary type Number of intermediaries Exclusive distribution Severely limited distribution

Exclusive distributionintermediaries Terms and responsibilities of intermediaries Severely limited distribution Selective distribution Some

responsibilities of intermediaries Exclusive distribution Severely limited distribution Selective distribution Some

Severely limited distribution

Selective distributionExclusive distribution Severely limited distribution Some intermediaries willing to carry good are selected

Some intermediaries willing to carry good are selectedSeverely limited distribution Selective distribution Intensive distribution Offering is placed in as many outlets

Intensive distributiondistribution Some intermediaries willing to carry good are selected Offering is placed in as many outlets

willing to carry good are selected Intensive distribution Offering is placed in as many outlets as

Offering is placed in as many outlets as possible.

Marketing Communications

Direct Advertising Marketing Sales Public Promotion Relations Personal Selling
Direct
Advertising
Marketing
Sales
Public
Promotion
Relations
Personal
Selling

Developing Effective Marketing Communications

Steps in Marketing Communications Program Development

Identify target audienceSteps in Marketing Communications Program Development Determine objectives of communication Design the message

Determine objectives of communicationCommunications Program Development Identify target audience Design the message Select communication channels Establish

Design the messagetarget audience Determine objectives of communication Select communication channels Establish the budget Select

Select communication channelsDetermine objectives of communication Design the message Establish the budget Select the marketing communications mix

Establish the budgetDesign the message Select communication channels Select the marketing communications mix Measure results

Select the marketing communications mixcommunication Design the message Select communication channels Establish the budget Measure results Manage the IMC process

Measure resultsmessage Select communication channels Establish the budget Select the marketing communications mix Manage the IMC process

Manage the IMC processthe message Select communication channels Establish the budget Select the marketing communications mix Measure results

Developing Effective Marketing Communications

Step 1: Identifying the target audience Identifying the target audience

Communications Step 1: Identifying the target audience Includes assessing the audience’s perceptions of the

Includes assessing the audience’s perceptions of the company, product, and competitors’ company/product image

Step 2: Cognitive, affective, and behavioral objectives may be set Cognitive, affective, and behavioral objectives may be set

Step 3: AIDA model guides message design AIDA model guides message design

Developing Effective Marketing Communications

Message Design

Developing Effective Marketing Communications Message Design Content Structure Format Source Message content decisions

ContentDeveloping Effective Marketing Communications Message Design Structure Format Source Message content decisions involve the

StructureEffective Marketing Communications Message Design Content Format Source Message content decisions involve the

FormatMarketing Communications Message Design Content Structure Source Message content decisions involve the selection of

SourceCommunications Message Design Content Structure Format Message content decisions involve the selection of appeal,

Message content decisions involve the selection of appeal, theme, idea, or USPMessage Design Content Structure Format Source Types of appeals Rational appeals Emotional appeals Moral

Types of appealscontent decisions involve the selection of appeal, theme, idea, or USP Rational appeals Emotional appeals Moral

Rational appealscontent decisions involve the selection of appeal, theme, idea, or USP Types of appeals Emotional appeals

Emotional appealscontent decisions involve the selection of appeal, theme, idea, or USP Types of appeals Rational appeals

Moral appealscontent decisions involve the selection of appeal, theme, idea, or USP Types of appeals Rational appeals

Developing Effective Marketing Communications

Message Design

Developing Effective Marketing Communications Message Design Content Structure Format Source One-sided vs. two- sided

ContentDeveloping Effective Marketing Communications Message Design Structure Format Source One-sided vs. two- sided messages

StructureEffective Marketing Communications Message Design Content Format Source One-sided vs. two- sided messages Order of

FormatMarketing Communications Message Design Content Structure Source One-sided vs. two- sided messages Order of argument

SourceCommunications Message Design Content Structure Format One-sided vs. two- sided messages Order of argument

One-sided vs. two- sided messagesDeveloping Effective Marketing Communications Message Design Content Structure Format Source Order of argument presentation

Order of argument presentationEffective Marketing Communications Message Design Content Structure Format Source One-sided vs. two- sided messages

Developing Effective Marketing Communications

Message Design

Developing Effective Marketing Communications Message Design Content Structure Format Source Message format decisions vary

ContentDeveloping Effective Marketing Communications Message Design Structure Format Source Message format decisions vary with

StructureEffective Marketing Communications Message Design Content Format Source Message format decisions vary with the type of

FormatMarketing Communications Message Design Content Structure Source Message format decisions vary with the type of media,

SourceCommunications Message Design Content Structure Format Message format decisions vary with the type of media, but

Message Design Content Structure Format Source Message format decisions vary with the type of media, but

Message format decisions vary with the type of media, but may include:

Graphics, visualsdecisions vary with the type of media, but may include: Headline, copy or script Sound effects,

Headline, copy or scriptwith the type of media, but may include: Graphics, visuals Sound effects, voice qualities Shape, scent,

Sound effects, voice qualitiesvary with the type of media, but may include: Graphics, visuals Headline, copy or script Shape,

Shape, scent, texture of packagevary with the type of media, but may include: Graphics, visuals Headline, copy or script Sound

Developing Effective Marketing Communications

Message Design

Developing Effective Marketing Communications Message Design Content Structure Format Source Message source

ContentDeveloping Effective Marketing Communications Message Design Structure Format Source Message source characteristics can

StructureEffective Marketing Communications Message Design Content Format Source Message source characteristics can influence

FormatMarketing Communications Message Design Content Structure Source Message source characteristics can influence

SourceCommunications Message Design Content Structure Format Message source characteristics can influence attention and

Message source characteristics can influence attention and recallMessage Design Content Structure Format Source Factors underlying perceptions of source credibility:

Factors underlying perceptions of source credibility:Format Source Message source characteristics can influence attention and recall Expertise Trustworthiness Likability

Expertisecan influence attention and recall Factors underlying perceptions of source credibility: Trustworthiness Likability

Trustworthinesscan influence attention and recall Factors underlying perceptions of source credibility: Expertise Likability

Likabilitycan influence attention and recall Factors underlying perceptions of source credibility: Expertise Trustworthiness

Developing Effective Marketing Communications

Communications Mix Selection

Marketing Communications Communications Mix Selection Types of promotional tools Selection factors Advertising

Types of promotional toolsMarketing Communications Communications Mix Selection Selection factors Advertising Sales promotion Public

Selection factorsCommunications Mix Selection Types of promotional tools Advertising Sales promotion Public relations and publicity

AdvertisingMix Selection Types of promotional tools Selection factors Sales promotion Public relations and publicity Direct

Sales promotionTypes of promotional tools Selection factors Advertising Public relations and publicity Direct marketing Personal

Public relations and publicityMix Selection Types of promotional tools Selection factors Advertising Sales promotion Direct marketing Personal selling

Direct marketingTypes of promotional tools Selection factors Advertising Sales promotion Public relations and publicity Personal selling

Personal sellingTypes of promotional tools Selection factors Advertising Sales promotion Public relations and publicity Direct marketing

Developing Effective Marketing Communications

Communications Mix Selection

Marketing Communications Communications Mix Selection Types of promotional tools Selection factors Consumer vs.

Types of promotional toolsMarketing Communications Communications Mix Selection Selection factors Consumer vs. business market Stage of

Selection factorsCommunications Mix Selection Types of promotional tools Consumer vs. business market Stage of buyer readiness Stage

Consumer vs. business marketMix Selection Types of promotional tools Selection factors Stage of buyer readiness Stage of product life

Stage of buyer readinessTypes of promotional tools Selection factors Consumer vs. business market Stage of product life cycle Market

Stage of product life cycleSelection Types of promotional tools Selection factors Consumer vs. business market Stage of buyer readiness Market

Market rankof promotional tools Selection factors Consumer vs. business market Stage of buyer readiness Stage of product

Developing and Managing the Advertising Campaign

Major Media Types
Major
Media
Types

Newspapers

Newsletters

Internet

Magazines

Radi

o

Direct Mail

Outdoo

r

Brochures

Televisio

Telephon

n

e

Yellow

Pages

Sales Promotion

Sales promotions are short-term incentives designed to stimulate purchase among consumers or trade are short-term incentives designed to stimulate purchase among consumers or trade

Purpose of sales promotiondesigned to stimulate purchase among consumers or trade Attract new triers or brand switchers Reward loyal

Attract new triers or brand switchersto stimulate purchase among consumers or trade Purpose of sales promotion Reward loyal customers Increase repurchase

Reward loyal customersamong consumers or trade Purpose of sales promotion Attract new triers or brand switchers Increase repurchase

Increase repurchase ratespurchase among consumers or trade Purpose of sales promotion Attract new triers or brand switchers Reward

Sales Promotion

Major Consumer Sales Promotion Tools
Major
Consumer
Sales
Promotion
Tools

Cross-Promotions

Tie-in Promotions Cash Refunds

Premiums

Prizes

Coupon

s

Free Trials

Samples

Product Warranties

Patronage Awards

POP Displays & Demonstrations

Public Relations

Major Public Relations Tools

News Events Speeches Publications Sponsorships Identity Media Public-service Activities
News
Events
Speeches
Publications
Sponsorships
Identity Media
Public-service Activities

Direct Marketing

Direct marketing uses consumer-direct channels to reach and deliver offerings to consumers without intermediaries. uses consumer-direct channels to reach and deliver offerings to consumers without intermediaries.

Direct marketing is growing and offers consumers key benefits.and deliver offerings to consumers without intermediaries. Firms are recognizing the importance of integrated direct

Firms are recognizing the importance of integrated direct marketing efforts.and deliver offerings to consumers without intermediaries. Direct marketing is growing and offers consumers key benefits.

Direct Marketing Channels

Major Direct Marketing Tools

Face-to-Face Direct Mail Online Catalog Telemarketin Kiosk g TV Marketing
Face-to-Face
Direct Mail
Online
Catalog
Telemarketin
Kiosk
g
TV Marketing

Designing the Sales Force

Types of Sales Representatives

Deliverer Order taker Missionary Technician Demand creator Solution vender
Deliverer
Order taker
Missionary
Technician
Demand creator
Solution vender

Personal Selling Principles

Major Aspects

Personal Selling Principles Major Aspects Sales professionalism Negotiation Relationship marketing Sales-oriented approach

SalesPersonal Selling Principles Major Aspects professionalism Negotiation Relationship marketing Sales-oriented approach

professionalism

NegotiationSelling Principles Major Aspects Sales professionalism Relationship marketing Sales-oriented approach Stresses high

RelationshipPrinciples Major Aspects Sales professionalism Negotiation marketing Sales-oriented approach Stresses high pressure

marketing

Sales-oriented approachSales professionalism Negotiation Relationship marketing Stresses high pressure techniques Customer-oriented approach

Stresses high pressure techniquesNegotiation Relationship marketing Sales-oriented approach Customer-oriented approach Stresses customer problem solving

Customer-orientedSales-oriented approach Stresses high pressure techniques approach Stresses customer problem solving Steps in

approach

Stresses customer problem solvingSales-oriented approach Stresses high pressure techniques Customer-oriented approach Steps in industrial selling process

Steps in industrial selling processSales-oriented approach Stresses high pressure techniques Customer-oriented approach Stresses customer problem solving

Personal Selling Principles

Major Aspects

Personal Selling Principles Major Aspects Sales professionalism Negotiation Relationship marketing Reps need skills for

SalesPersonal Selling Principles Major Aspects professionalism Negotiation Relationship marketing Reps need skills for

professionalism

NegotiationSelling Principles Major Aspects Sales professionalism Relationship marketing Reps need skills for effective

RelationshipPrinciples Major Aspects Sales professionalism Negotiation marketing Reps need skills for effective negotiation

marketing

Reps need skills for effective negotiationSales professionalism Negotiation Relationship marketing Negotiation is useful when certain factors characterize the

Negotiation is useful when certain factors characterize the saleNegotiation Relationship marketing Reps need skills for effective negotiation Negotiation strategy Principled BATNA

Negotiation strategyneed skills for effective negotiation Negotiation is useful when certain factors characterize the sale Principled BATNA

Principledfor effective negotiation Negotiation is useful when certain factors characterize the sale Negotiation strategy BATNA

BATNAfor effective negotiation Negotiation is useful when certain factors characterize the sale Negotiation strategy Principled

Personal Selling Principles

Major Aspects

Personal Selling Principles Major Aspects Sales professionalism Negotiation Relationship marketing Building long-term

SalesPersonal Selling Principles Major Aspects professionalism Negotiation Relationship marketing Building long-term

professionalism

NegotiationSelling Principles Major Aspects Sales professionalism Relationship marketing Building long-term supplier-customer

RelationshipPrinciples Major Aspects Sales professionalism Negotiation marketing Building long-term supplier-customer relationships

marketing

Building long-term supplier-customer relationships has grown in importanceSales professionalism Negotiation Relationship marketing Companies are shifting focus away from transaction

Companies are shifting focus away from transaction marketing to relationship marketing transaction marketing to relationship marketing

Business Strategic Planning

Differentiation Focu Porter’s Generic Strategies s
Differentiation
Focu
Porter’s Generic
Strategies
s

Overall cost leadership

MARKET POSITION STRATEGIES

MARKET LEADER – Defence strategiesMARKET POSITION STRATEGIES MARKET CHALLENGER – Challenger strategies MARKET FOLLOWER MARKET NICHER

MARKET CHALLENGER – Challenger strategiesMARKET POSITION STRATEGIES MARKET LEADER – Defence strategies MARKET FOLLOWER MARKET NICHER

MARKET FOLLOWERMARKET POSITION STRATEGIES MARKET LEADER – Defence strategies MARKET CHALLENGER – Challenger strategies MARKET NICHER

MARKET NICHERMARKET POSITION STRATEGIES MARKET LEADER – Defence strategies MARKET CHALLENGER – Challenger strategies MARKET FOLLOWER

GROWTH STRATEGIES(Ansoff’s growth vector matrix)

CURRENT

PRODUC

T

NE

W

MARKET

MARKET

PENETRATION

DEVELOPMENT

PRODUCT

DIVERSIFICATION

DEVELOPMENT

CURREN

T

 

NE

MARKET

W

PORTER’S 5 FORCES MODEL DETERMINING PROFITABILITY & SHAPING OF COMPETITION IN AN INDUSTRY

COMPETITIVE FORCEPROFITABILITY & SHAPING OF COMPETITION IN AN INDUSTRY THREAT OF NEW ENTRANTS THREAT OF SUBSTITUTES BARGAINING

THREAT OF NEW ENTRANTSSHAPING OF COMPETITION IN AN INDUSTRY COMPETITIVE FORCE THREAT OF SUBSTITUTES BARGAINING POWER OF BUYERS BARGAINING

THREAT OF SUBSTITUTESIN AN INDUSTRY COMPETITIVE FORCE THREAT OF NEW ENTRANTS BARGAINING POWER OF BUYERS BARGAINING POWER OF

BARGAINING POWER OF BUYERSOF COMPETITION IN AN INDUSTRY COMPETITIVE FORCE THREAT OF NEW ENTRANTS THREAT OF SUBSTITUTES BARGAINING POWER

BARGAINING POWER OF SUPPLIERSOF COMPETITION IN AN INDUSTRY COMPETITIVE FORCE THREAT OF NEW ENTRANTS THREAT OF SUBSTITUTES BARGAINING POWER