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Pricing strategy
Promotional mix and distribution
strategy
Product Attributes - Features of a product that
gives value to customers.
by the consumers
Brand barriers – to be recognized and plan to
price, etc.,
Four dimensions of product mix
◦ Depth – number of variants of each product
◦ Width – number of product lines
◦ Length – total number of items in the mix
◦ Consistency – how closely related are the product
lines
• Line extension - extending the product line to
reach different market segments.
Vulnerability – percentage of sale or profit in a line
Decision proces
◦ Review – review the product lines in effect
◦ Modify – add/ delete the products in product line
◦ Compare & Monitor the effect – monitor the effect of new
product line with the old line and with the other existing
product lines
◦ Forecast – forecast for the effects of the change of
product mix.
Strategies for Product Development
◦ Generation of ideas
R&D
Interaction
Wider search
◦ Screening the ideas generated
Ideas compatible with company’s objectives
◦ Develop concepts
Elaborated version of the ideas
◦ Testing concepts
Testing and getting feed back from the target
market
◦ Marketing
Target market, product positioning
Distribution strategy and budgeting
Profit, shares, long term sales
◦ Analysis of the business
Analysis whether it suits the company’s
objectives and make profits
◦ Prototypes
Built by R & D and checked for its product
concepts and estimated cost
Functional test & Consumer test
◦ Testing in the market
Response of the dealers and consumers
◦ Commercialization (target market)
When - Market entry timing
Where – locality
How – action plan
◦ Adoption of the product
4 stages – awareness, interest, trying &
adopting
Product life cycle – 4 stages, bell shaped
◦ Introduction
◦ Growth
◦ Maturity
◦ Decline
Service – An act offered by one to another, intangible.
Marketing strategies
◦ Holistic marketing
External, Internal & Interactive Marketing
◦ Managing the quality of service
Meeting Customer expectations
Commitment for quality with high standards
Monitoring the performance
Employee satisfaction
• Pricing – Applying prices to purchase and sales
order, one of the four P’s of marketing mix.
Factors to be considered for pricing
◦ Print Advertising
Brochures, new papers, magazines
◦ Outdoor Advertising
Attracting customers outdoors. Eg:-billboards,
events
◦ Media Advertising
Advertising in Television, Internet, Radio
◦ Covert Advertising
Using the products in cinemas, in stage shows
or in any other entertainment
Sales Promotion – initiative to promote a increase in sales.
Two forms- (i) Consumer sales promotion – target –
consumers – (ii) Trade sales promotion – target –
retailers.
Techniques of sales promotion
make a sale.
◦ Push strategy; pull strategy
◦ Prospects
◦ Communicate
5 stages of personal selling
◦ Prospects
◦ Communicate
◦ Sale
◦ Service
◦ Feedback
Advantages
◦ Personal attention
◦ Demonstrate the product
◦ Long term relationship
Direct Marketing – market products directly to
customers without intervening any media
Channels of direct marketing
◦ Mail
◦ E Mail
◦ Telemarketing
◦ Couponing
Advantages
◦ Communicate directly
◦ Costs less than other marketing techniques
◦ Greater control and accountability
Marketing communication mix – particular combination
of marketing tools working together.
Setting up Marketing Communication Mix
◦ Decide what is to be and to whom is to be
communicated
◦ Evaluate the characteristics of each component
◦ Consider the total budget & the resources available
◦ Select the components which suits the objective to
reach the target market
◦ Set up the marketing communication mix.
Distribution channels -"Channel of distribution
comprises a set of institutions which perform all of
the activities utilized to move a product and its title
from production to consumption“- Buclin in
"Theory of Distribution Channel Structure"
Factors to be considered:
◦ Market factors
◦ Producer factors
◦ Product factors
Types of distribution channels
◦ Wholesalers
◦ Retailers
◦ Agents
◦ Direct sales