Documenti di Didattica
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Management
Department
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Product &
Services
Communications
Channels
Departments
Integrated
Marketing
Internal
Marketing
Holistic
Marketing
Socially
Responsible
Marketing
Ethics Environment
Legal
Relationship
Marketing
Community
Customers
Channel Partners
SELLING
MARKETING
STARTING POINT
PRODUCT
CUSTOMER NEEDS
MEANS
AGGRESSIVE
SELLING &
PROMOTION
SUPERFLUOUS SELLING
ENDS
PROFITS THRU
SALES VOLUME
PROFITABILITY
THROUGH CUSTOMER
SATISFACTION
WHAT IS MARKETING
MARKETERS TASK
MARKETING
PRODUCTS
SERVICES
PERSONS
PLACES
ACTIVITIES
IDEAS
Marketing Mix
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
Locations
Inventory
Transport
11
MARKETING MIX - 7 PS
PRODUCT
PRICE
PLACE
PROMOTION
PEOPLE
PACE (PROCESS)
PROOF OF PERFORMANCE
Place
Promotion Price
People
- Employees
Recruiting
Training
Motivation
Rewards
Teamwork
- Customers
Education
Training
Physical evidence
Facility design
Equipment
Signage
Employees dress
- Other tangibles
Reports
Business cards
Statements
Guarantees
Process
- Flow of activities
Standardized
Customized
- Number of steps
Simple
Complex
- Customer involvement
14
OK / SATISFIED
DISSATISFIED/ UNHAPPY
DELIGHTED
DELIGHTED CUSTOMERS HAVE EMOTIONAL AFFINITY WITH BRAND & HENCE LOYALTY.
EXPECTATIONS BASED ON PAST BUYING EXPERIENCE, ADVERTISEMENTS, FRIENDS,
COMPETITORS EXPECTATIONS, PRICE, BENCHMARKING.
EXPECTATIONS DIFFER BASED ON PRODUCT, CUSTOMER.
Prospects
Disqualified
Prospects
First-time
customers
Repeat
customers
Clients
Inactive of
Ex-customers
Members
Advocates
Partners
18
PRODUCT
SERVICE
PERSONNEL
TOTAL CUSTOMER
VALUE
IMAGE
CUSTOMER DELIVERED
VALUE
MONETARY VALUE
TIME COST
ENERGY COST
PSYCHIC 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
Accountable
Reactive
Basic or
reactive
Medium number
of customers/
distributors
Proactive
Accountable
Reactive
Few customers /
distributors
Partnership
Proactive
Accountable
COST OF ACQUISITION
TOTAL COST
TOTAL SALES CALLS
EXPENSES)
Products
P1
P2
P3
P4
C2
C3
+
High-profit
customer
Mixed-bag
customer
Losing product
Losing
customer
31
I. External
II. Internal
Awareness
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
STRATEGIC PLANNING
STRATEGIC PLANNING
2.
3.
Implementing
Corporate planning
Organizing
Controlling
Measuring Results
Division planning
Diagnosing results
Business planning
Product planning
Implementing
Taking corrective
action
Good mission statements, limited number of goals and values and major
competitive scopes.
Provides direction for 10 12 years.
20%
18%
16%
14%
12%
10%
8%
6%
4%
2%
Stars
Question Marks
Cash Cow
Dogs
40
1.
An unbalanced portfolio would have too many dogs or question marks and/or
too few stars and cash cows.
2.
3.
Each business is rated in terms of two major dimensions, market attractiveness and
business strength.
1.
2.
Each of these factors is assigned weights and business is measured of 5 point scale.
(a)
Classification
BUSINESS STRENGTH
Strong
Medium
Weak
5.00
Joints
Hydraulic
pumps
3.67
Aerospace
fittings
Clutches
Fuel
Pumps
Flexible
2.33
1.00
5.00
diaphragms
Relief
values
3.67
2.33
1.00
43
(B) Strategies
BUSINESS STRENGTH
PROTECT POSITION
Invest to grow at maximum
digestible rate.
Concentrate effort on
maintaining strength.
INVEST TO BUILD
Challenge for
leadership.
Build selectively on
strengths.
Reinforce vulnerable
areas
BUILD SELECTIVELY
Invest heavily in most
attractive segments.
Build up ability to counter
competition.
Emphasize productivity
by raising productivity.
SELECTIVITY /
MANAG FOR EARNING
Strong
BUILD SELECTIVELY
Specialize around limited
strength.
Seek ways to overcome
weaknesses.
Withdraw if indications of
sustainable growth are
lacking.
LIMITED EXPANSION
Protect existing program. OR HARVEST
Concentrate investments Look for ways to expand
without high risk;otherwise,
in segments where
profitability is good and minimize investment and
rationalize operations.
risks are relatively low.
DIVEST
Protect position in most Sell at time that will
profitable segments.
maximize cash value.
Upgrade product line.
Cut fixed costs and avoid
Minimize investment.
investment meanwhile.
Medium
Weak
44
When gap between future desired sales and projected sales, then
three options.
1. INTENSIVE GROWTH current business
2. INTEGRATIVE GROWTH build or acquire businesses related to the
companys current businesses.
3. DIVERSIFICATION GROWTH opportunities in unrelated business.
GROWTH STRATEGIES
Current Product
New Product
Current
Markets
1. Market- penetration
strategy
3. Productdevelopment
strategy
New
Markets
2. Marketdevelopment
strategy
(Diversification
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
Efficiency,
short-run profits
Market
Penetration
New
segments
Existing
Customers
Convert
nonusers
Competitors
customers
New product
developments
Decrease
inputs
Reduce
costs
Improve
asset
utilization
Increase
outputs
Increase
price
Improve
sales mix53
MARKETING PROCESS
Involves
1.
2.
3.
4.
TO,
1.
Define current situation facing the product (and how we got there)
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. MAJOR FACTORS - (MACROENVIRONMENT)
A) DEMOGRAPHIC - (BREAKUP & CHANGES IN AGE, INCOME, SEX, EDUCATION,
URBAN-RURAL, LIFE EXPECTANCY, OCCUPATION, PERSONS PER HOUSEHOLD).
B) SOCIO / CULTURAL - (FAMILY STRUCTURE, DECISION-MAKING, PESTERPOWER
VALUES LIFESTYLES).
C) TECHNO LOGICAL - (CREATIVE DESTRUCTION, IMPACT ON PRODUCT,
PACKAGING, ADVERTISING).
D) POLITICAL / LEGAL - (LAWS TO PREVENT UNFAIR COMPETITION, CONSUMERS &
SOCIETY).
E) ECONOMIC - (PER CAPITA INCOME, CREDIT AVAILABILITY, SAVINGS, STAGE OF
BUS CYCLE).
F) PHYSICAL - (GOVTAL INTERVENTION, NEW OPPORTUNITIES).
MARKETING ENVIRONMENT
D) CUSTOMERS
E) COMPETITORS
F) PUBLIC - ASCI, CONSUMER ACTION GROUP
CONSUMER BEHAVIOUR
7 Os FRAMEWORK
Buyers
characteristics
Marketing stimuli
Other stimuli
Product
Price
Place
Promotion
Economic
Technological
Political
Cultural
Cultural
Social
Personal
Psychological
Buyers decisions
Product choice
Brand choice
Dealer choice
Purchase timing
Purchase amount
Buyers
Decision
Process
Buying roles
Buying types
Buying Stages
PERSONAL
CULTURAL
SOCIAL
REFERENCE
CULTURE
GROUP
FAMILY
SUBCULTURE
SOCIAL CLASS
ROLES AND
STATUSES
PSYCHOLOGICAL
MOTIVATION
OCCUPATION
PERCEPTION
ECONOMIC
CIRCUMSTANCES
LIFESTYLE
PERSONALITY
AND SELFCONCEPT
LEARNING
BELIEFS AND
ATTITUDES
BUYER
BUYING ROLES
INITIATOR
INFLUENCER
DECIDER
PURCHASER
USER
High Involvement
Difference
between brands
perceived
COMPLEX
Low Involvement
VARIETY
SEEKING
WB
DISSONANCE
Difference
REDUCING
between brands
not perceived B P New B
HABITUAL
WB
PROBLEM RECOGNITION
INFORMATION SEARCH Criteria, Alternatives
EVALUATION OF ALTERNATIVES
PURCHASE DECISION
POSTPURCHASE BEHAVIOUR
PERSONAL SOURCES
COMMERCIAL SOURCES
PUBLIC SOURCES
EXPERIENTIAL SOURCES
TOTAL SET
AWARENESS SET
CONSIDERATION SET
CHOICE SET
PURCHASE DECISION
POST-PURCHASE BEHAVIOUR
1)
2)
3)
4)
74
COMPENSATORY MODEL
EXPECTANCY VALUE MODEL
IDEAL BRAND MODEL
NON-COMPENSATORY MODEL
CONJUNCTIVE MODEL
DISJUNCTIVE MODEL
LEXI COGRAPHIC MODEL
CAR
ENGINE
CAPACITY
WTS.
FORD ESCORT
PERCEIVED
VALUES
EXTERIORS
PRICE
MILEAGE
0.4
0.2
0.3
0.1
10
8.2
OPEL ASTRA
7.4
HONDA CITY
10
7.7
CIELO
4.8
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
83
COMPETITION
WHAT DO YOU NEED TO KNOW
WHO ARE OUR COMPETITORS - IDENTIFY & SELECT
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
87
88
Brand
(inward oriented)
Product Form
(inward)
Generic / Category
(Outward)
Desire / Budget
89
90
.6
.2
.2
TIME
.2
.3
.4
.1
.2
.3
.5
.1
.1
.5
.3
.1
.4
.5
91
Secondary
Form
Existing definitions
Technology substitution
Managerial judgment
X
X
X
X
Interpurchase times
Cross-elasticities
X
X
X
X
X
X
92
Secondary
Form
Customer evaluation based:
Overall similarity
Similarity of consideration X
X
X
sets
Product deletion
Substitution in use
Note: An X indicates that either the method is useful for determining competition at
that level or it employs data of a certain type.
93
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.
a) from strategy
b) geographical home of parent
c) ownership of firm - private / public/ government
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
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
100
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
I.
II.
106
109
113
115
116
Vertical-level specialist:
Customer-size specialist:
Specific-customer specialist:
Geographic specialist:
Service specialist:
Channel specialist:
117
118
MARKETING
INFORMATION
MARKETING
ENVIRONMENT
Macro
environment
MARKETING INFORMATION
SYSTEMS
INTERNAL
REPORTS
SYSTEM
MARKETING
RESEARCH
SYSTEM
Competition
Public
MARKETING
MANAGERS
Analysis
Planning
Target market
Marketing
channels
MARKETING
INFORMATION
Implementation
Control
MARKETING
INTELLIGENCE
SYSTEM
ANALYTICAL
MARKETING
SYSTEM
3.
7.
8.
I.
DEFINE THE PROBLEM - not too broad or narrow, watch for symptoms.
B) DESCRIPTIVE
CONCLUSIVE
C) CAUSAL
IV. DEVELOP RESEARCH PLAN
A) DATA SOURCES
SECONDARY
CENSUS
PRIMARY
B) SAMPLING PLAN
SAMPLE
B)
E) CONTACT METHODS
-MAIL,TELEPHONE,PERSONAL(ARRANGED,INTERCEPT)
COLLECT INFORMATION-Problems of not at
home,non co-operation,biased,dishonest
answers or fudging
vi) DATA ANALYSIS
vii) REPORT & PRESENTATION
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.
- Non-verbal cues
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)
1. Completely unstructured
1. Dichotomous (2 choice)
2. Word association
3. Sentence completion
4. Story completion
5. Picture completion
6.
4. Semantic Differential
5. Importance Scale
6.
Monadic Rating
7.
QUESTIONNAIRE
A QUESTIONABLE QUESTIONNAIRE
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
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
2.
Segment Identification
For each needs-based segment, determine which demographics, lifestyles, and usage behaviors make the
segment distinct and identifiable (actionable).
3.
Segment Attractiveness
and market
of each
4.
Segment Profitability
5.
Segment Positioning
that
characteristics.
6.
7.
Marketing-Mix Strategy
promotion
RELEVANT
MEASURABLE
SUBSTANTIAL
ACCESSIBLE
ACTIONABLE
STEPS IN SEGMENTATION
2. OCCASIONS
3. USAGE RATE (HEAVY, MEDIUM, LIGHT)
4. USER STATUS (EX, CURRENT, NON, POTENTIAL, REGULAR, 1ST TIME)
5. LOYALTY STATUS (HARDCORE, SOFT CORE, SHIFTING, SWITCHERS)
6. BUYER READINESS (UNAWARE, AWARE, INFORMED, INTERESTED)
7. ATTITUDE TO PRODUCT (ENTHUSIASTIC, POSITIVE, INDIFFERENT, NEGATIVE, HOSTILE).
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 risk-avoiding
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)
2)
3)
4)
149
Involves:
1) Defining the Target Market
2) Competitive frame of reference
3) Points of Parity & Points of Difference
151
2)
Distinctive
3)
152
2)
3)
Sustainability enduring
STEPS IN POSITIONING
Positioning Strategy
1.
2.
3.
4.
5.
6.
7.
8.
156
PRODUCT REPOSITIONING
158
DIFFERENTIATION VARIABLES
CHANNEL IMAGE
Features
Performance
Conformance
Durability
Reliability
Reparability
Style
Design
Competence
Coverage
Symbol
Courtesy
Expertise
Written and
Performance
audiovisual
Reliability
media
Responsiveness
Atmosphere
communication
Events
Ordering ease
Delivery
InstallationCredibility
Customer training
Customer consulting
Maintenance and
repair
Miscellaneous
COMPANY COST
CUSTOMER VALUE
(1)
(2)
$100
600
800
$200
600
2400
CUSTOMER
EFFECTIVENESS
(3 = 2/ 1)
2
1
3
160
Technology
Cost
Quality
Service
4
2
3
Company Competitor Importance
of
Standing Standing
Improving
Standing
(H-M-L)*
8
6
8
4
8
8
6
3
L
H
L
H
5
Affordability
and speed
(H-M-L)
L
M
L
H
6
Competitors
Ability to
Improve
standing
(H-M-L)
M
M
L
L
7
Recommend
ed
Action
Hold
Monitor
Monitor
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
2.
3.
SHOPPING HABITS
4.
5.
6.
7.
Classification Of Products
Most goods
Easy to
evaluate
Most services
Difficult to
evaluate
166
167
168
BRAND
Brand
170
BRANDING DECISIONS
2.
3.
4.
5.
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
BRAND ASSOCIATIONS
Product attributes
Intangibles
Country/geographic area
Customer benefits
Competitors
Brand-name
and symbol
Product class
Lifestyle/personality
Relative price
Use/application
Celebrity/person
User/customer
FUNCTIONAL
VALUE
SOCIAL
VALUE
CONDITIONAL
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
1.
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
1.
2.
3.
Tests engineering tests, visual tests, dealer tests and consumer tests.
4.
183
Pricing methods
Cost based
Customer based
Competitor based
DISTRIBUTION
189
CHANNEL LEVELS
EACH INTERMEDIARY WHO BRINGS PRODUCT AND ITS TITLE CLOSER TO BUYER
CONSITUTES CHANNEL LEVEL.
ZERO CHANNEL(Direct marketing channel) - Door to door ,home parties,
THREE LEVEL
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
ADVERTISING
2.
SALES PROMOTION
3.
4.
PERSONAL SELLING
5.
DIRECT MARKETING
6.
MERCHANDISING
7.
EVENT SPONSORSHIP
8.
PRODUCT DESIGN
9.
ONLINE ADVERTISING
SALES
PROMOTION
PUBLIC
RELATIONS
PERSONAL
SELLING
DIRECT
MARKETING
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
Press kits
Speeches
Seminars
Annual
reports
Charitable
donations
Sponsorships
Publications
Community
relations
Lobbying
Identity media
Company
magazine
Events
Sales
presentations
Sales meetings
Incentive
programs
Samples
Fairs and trade
shows
Catalogs
Mailings
Telemarketing
Electronic
shopping
TV shopping
Fax mail
E-mail
Voice mail
PROMOTIONAL TOOLS
UNDERSTANDING UNIQUE CHARACTERISTICS AND COSTS OF EACH
1.
2.
3.
4.
5.
6.
PROMOTIONAL TOOLS
7.
8.
9.
199
PLC PHASES
1. INTRODUCTION
2. GROWTH
3. MATURITY
4. DECLINE
200
Promotion
High
High
Low
Low
Rapidskimming
strategy
Slowskimming
strategy
Rapidpenetration
strategy
Slowpenetration
strategy
202
EXPANDING DISTRIBUTION;
EXPANDING SHELF FACINGS;
INCREASING PURCHASE FREQUENCY;
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;
207
DECLINE PHASE
208
ASCERTAIN THAT YOU REALLY HAVE A VIABLE PRODUCT BEFORE YOU START
MARKETING IT;
CONCENTRATE EFFORTS ON DEVELOPING EFFECTIVE POSITIONING AND
ADVERTISING THAT REFLECTS THAT POSITIONING OPTIMALLY;
WITH THE TRADE, AIM AT DISTRIBUTION BEFORE ANYTHING ELSE;
CLEARLY ESTABLISH THE PRICE LEVEL THAT YOU WANT.
209
210
S
a
l
e
s
(SEE
Introduction
Growth
Maturit
y
Decline
Time
211
Characteristics
Sales
Low sales
sales
High cost
per
customer
Costs
Profits
Customers
Competitors
Rapidly rising
Peak sales
sales
Declining
Negative
Rising profits
Innovators
Early adopters
Middle majority
Growing number
Stable number
beginning to decline
Declining number
Reduce
expenditure and
212
milk the brand
Few
Laggards
Marketing Objectives
Create product
Maximize market
awareness and trial share
Strategies
Product
Price
Distribution
Advertising
Sales
Promotion
Offer product
Offer a basic product extensions, service,
warranty
Charge cost-plus
Build selective
Distribution
Price to penetrate
market
Build intensive
distribution
Diversify brands
and models
Price to match or
Best competitors
Build product
Build awareness and Stress brand
awareness among interest in the mass
differences and
early adopters and Market
Benefits
dealers
Reduce to take
Use heavy sales advantage of heavy
promotion to enticeconsumer demand
trial
Go selective:
Phase out
unprofitable
Outlets
Reduce to level
Needed to retain
Hard-core loyals
Innovators
2.5%
Early
Adopters
13.5%
Early
Majority
34%
Late
Majority
34%
Laggards
16%
Adopter Categories
ADOPTER
CATEGORY
DESCRIPTION
Innovators
RELATIVE PERCENTAGE
POPULATION WITHIN THE
THAT EVENTUALLY
ADOPTS
2.5%
13.5%
34.0
Late Majority Skeptical- adopt new ideas just after the average
time; adopting may be both an economic necessity
and a reaction to peer pressures;innovations
approached cautiously.
Laggards
34.0
16.0
100.0%
215
216
217
Market Demand
Market demand for a product is the total volume that would be bought by
a defined customer group in a defined geographical area in a defined time
period in a defined marketing environment. (e.g. recession V/s prosperity)
under a defined marketing program. Hence, market demand is a function.
Market minimum (base sales) & market potential (upper limit).
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.
220
Sales quota is sales goal set for a product line, company division or sales
representative. Sales quota higher than sales forecast.
221
a)
b)
Chain Method Potential for sweetened milk for urban adults = Urban
population above 18 years X Personal discretionary income (urban) per
capita X Average percentage of discretionary income spent on food X
Average percentage of amount spent on food that is spent on beverages
X Average percentage of amount spent on beverages that is spent on
dairy beverages X Expected percentage of amount spent on dairy
beverages that will be spent on sweetened milk.
222
2)
3)
a)
b)
223
2,00,000
100
2,00,000
CDI
NATIONAL
MUMBAI
ACTUAL SALES
28,000
14
56,000
200
14,000
BANGALORE
42,000
300
10,000
DELHI
10,000
100
2,000
CALCUTTA
1,000
50
225
BDI
-
200
200
150
100
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)
231
Buying Situations
1. Straight rebuy - recorder on routine basis automatic recording
system from approved list of suppliers. Insuppliers & outsuppliers
strategy.
2. Modified rebuy - modifying in product specifications. Prices,
delivery requirements or other terms.
3. New
ORGANIZATIONAL
Objectives
Policies
Procedures
Organizational
Structures
Systems
INTERPERSONAL
INDIVIDUAL
Interest
Authority
Status
Empathy
Persuasiveness
Age
Income
Education
Job position
Personality
Risk attitudes
Culture
BUSINESS
BUYER
2.
3.
4.
5.
6.
7.
8.
Performance review
BUYPHASES
Maybe
Yes
Yes
Yes
Yes
Yes
Yes
Yes
MODIFIED
REBUY
No
Maybe
Yes
Maybe
Maybe
Maybe
Maybe
Yes
STRAIGHT
REBUY
No
No
No
No
No
Yes
Vendor analysis
An example of vendor Analysis
Rating scale
ATTRIBUTES IMPORTANCE
WEIGHTS
Price
Supplier reputation
Product reliability
Service reliability
Supplier flexibility
.30
.20
.30
.10
.10
(1)
(2)
(3)
(4)
POOR
FAIR
GOOD
EXCELLENT
X
X
X
X