Marketing MGT

Presented by:Anand chaubey (uom)
Meaning and Definition of Markets

Philip Kotler :
A market consists of all potential customers sharing a particular need and wants who might be willing and able to engage in exchange to satisfy that need or want Market is a geographical region or a place which facilitates interaction & exchange between Buyers & Sellers . It can be an actual or conceptual place, where in forces of demand & supply operate.
Classification of Market
Stages of markets
what is marketing ?
The American Marketing Association (AMA) defines Marketing as The process of planning & executing the conception, pricing, promotion and distribution of ideas / goods / services to create exchanges that satisfy individual & organizational goals. Marketing starts with identifying customer needs and wants and ends with satisfying them through a
Importance of marketing
Nature of marketing
It is Operational: That is, managers must think and act
to achieve results. Benefits of marketing will not emerge from a passive attitude to the exchange process emphasizing the statement "no gains without pains".
It is Customer Oriented: That is, marketing firm is to be

the keen observer focussing its attention on needs of customers. Its effectiveness lies in finding solutions to the challenges posed by these demands.
It is Mutuality of Benefits: Exchange of goods and

services work and persist because it is the mutual interest of both parties to continue. Both the marketer
Nature of marketing
It is Value Driven: I The culture of the marketing firm are based on a desire to build the business through meeting the needs and responding to the market where the values espoused by firm's leaders are communicated to all those involved in the firm. It is Proactive to the Environment: Marketing firm is a sub-system of super-system, the environment. The environment is something which is external to the firm. The environmental forces are ecology, technology, competition, physical resources, legalframe work, socio-economic factors, which are to be accepted by the marketing unit where it is to be proactive and not reactive.
Nature of marketing
It Covers Both Profit and Non-Profit Making Organisations: Marketing is not confined to only profit making organisations but covers non-profit making organisations or charitable institutions that sell services such as educational institutions, churches, temples, mosques, gurudwaras, hospitals, sports clubs and so on.
Functions of marketing
Evolution of marketing
1. product era :- 1600-1750 2. production era:- 1780-1920 3. sales era:- 1920-1955 4.marketing era:- 1955-1985 5. societal marketing :- since late 1980s This above era is also called as marketing concepts.
MARKETING CONECPT
MARKETING CONECPT
SOCIETAL MARKETING CONCEPTS:- It is an enlightened marketing concept that hold a company should make marketing decisions by considering consumers wants, the companys requirements and societys long term interest.
Difference between marketing & selling concept
Difference between marketing & selling concept
Marketing orientation vs other orientation
Holistic marketing
Holistic Marketing is a process of integrating the : value exploration, value creation & value delivery activities, with the purpose of building long-term, mutually satisfying relationships and co-prosperity among key stakeholders. There are four components of holistic marketing . They are following: 1. internal marketing 2. integrated marketing 3.Relationship marketing 4. social responsibility marketing.
Holistic marketing
Marketing management
Philip Kotler : Marketing Management is the process of Planning and Executing the conception, pricing, promotion and distribution of goods, services and ideas to create exchanges that satisfy individual and organizational objectives American Marketing Association :
Marketing Management is the process of Planning and executing the conception, pricing, promotion, and distribution of ideas,
Objectives of marketing management

Objectives of Marketing Management : 1.Creating New Customers 2.Satisfying the needs of Customers 3.Enhancing the profitability of the business 4.Raising the Standard of living of the People 5.Determining the Marketing Mix
Task of marketing management

Tasks of Marketing Management : Developing Marketing Strategies and Plans Capturing Marketing Insights Connecting with Customers Building strong Brands Shaping the Market Offerings Communication Value Creating Long-term Growth
Marketing mix
Marketing mix refers to the tools available to an organization to gain the reaction it is seeking from its marketing objectives . Traditionally it is known as the 4ps of marketing . Those 4ps are as following: 1. Product 2. Price 3. Promotion 4. Place
Marketing mix
Marketing mix
Blend of the Marketing Mix depends upon : Marketing Objectives Type of Product Target Market Market Structure Rivals Behavior Global Issues (Culture/Religion, Etc. ) Marketing Position Product Portfolio
4cs of marketing management

A more recent marketing mix classification proposed by Robert Lauterborn focuses on customers point of view and includes: (1) Customer Benefit (2) Customer Cost (3)Customer Convenience (4) Communication Lauterborns view is that 4Ps correspond to customers 4Cs.
Marketing management process

Setting Marketing Objectives Analyzing Marketing Opportunities
Researching & Selecting Target Markets
Designing Marketing Strategies
Planning Marketing Programs
Organizing, Implementing & Controlling Marketing efforts
Customer Value & Satisfaction

Customer Perceived Value (CPV) is the difference between prospective customers evaluation of all the benefit and all the costs of an offering and the perceived alternative Classification of Customer Value: 1. Consumer choice is a function of small number of consumption value 2. Specific consumption values make differential contributions in any given choice of situation 3. All the consumption values are independent of each other
Customer Life time Value (CLV)
Where pt= price paid by a consumer C t = direct cost of servicing the customer at a time t i = discount rate or cost of capital for the firm r t = probability of customer repeat buying or being alive at time t AC = acquisition cost T = time horizon for estimating CLV CL V simply becomes margin (m) times a margin
Value Delivery Process
Customer Value Chain - Value & Satisfaction
Process for Planning Customer Value Delivery Strategy
Identifying value activities
Identifying value activities
Conducting a value chain analysis
Value delivery process
Philip Kotler :
Marketing environment
Marketing Environment refers to external factors and forces that affect the Companys ability to develop and maintain successful relationship with its target customers Characteristics of marketing environment:-
Types of marketing environment

Broadly grouped into two parts :
1. Internal environment 2. External environment
Factors effecting marketing environment
Environmental Scanning
The major components of Environmental Scanning are : 1.External Environmental Scanning 2.Customer Analysis 3.Competitor Analysis 4.Market Analysis 5.Company Analysis
Environmental Appraisal
The Environment of any organization is the sum of all conditions, events & influences that surround and affect it The Marketing Environment is Complex, Dynamic, Multi-faceted & has a Farreaching consequences. It is therefore crucial for any organization to understand the environmental
Various Environmental Components

1)Market Environment: Client's needs, preferences, perceptions, attitudes, values, buying behavior, satisfaction.
Product factors like demand, image, features, utility, design, life cycle, price, promotion, distribution, differentiation etc Competitor factors like different types of competitors, nature of competition. 2)Technological Environment: Sources of

3) Supplier Environment:
Cost, availability, and continuity of supply of raw material, components, parts. Infrastructural support and ease of availability of the different factors of production.
4) Economic Environment: The economic stage at which the country exists at a given point of time. The economic structure adopted, capitalistic, socialistic or mixed.

5) Legal or Regulatory Environment:
Policies related licensing, monopolies, FDI, Policies related to distribution and pricing. Policies related to sick industries, public sector, backward areas, consumer protection etc.
6) Political Environment:
The political system and its features, ideological forces, coalition compulsions. Political stability. Political funding of elections. Government's role in business.
7)Socio-Cultural Environment:
Demographics like population, its density and distribution, age composition, inter state migration, income distribution etc. Socio-cultural concerns like environmental pollution, consumerism, corruption etc. Family structure changes.
8) International or Global Environment:

Globalization process. Global economic forces. Global trade and commerce. Global financial system. Global markets and competitiveness.
Macro Environmental Analysis :PEST Analysis
Macro Environmental Analysis :PEST Analysis

Political Environment : Legislations / Govt. Rules / Pollution Control & Environmental Laws / Taxes & Duties / Pricing Policies / Consumer Protection Laws / Impex Policies FDI / Patent Laws / Labour Laws / Subsidies, etc
Economic Environment : Interest & Exchange Rates / Inflation / GDP / Per Capita Income / Demand-Supply Situation / Economic Trend (BC) , etc Social Environment : Values & Beliefs / Life Styles / Culture & Tradition / Religion & Language / Demographic -Factors ( Age, Gender, Income, Education, etc ) Technological Environment : Quality of Materials & Machinery /

Micro Environmental Analysis:-
Consumer Analysis Competitors Analysis Market Analysis Company Analysis -(SWOT Analysis)

SWOT Analysis:-
SWOT analysis is a tool for analyzing a business organization and its environment. It is the first stage of planning and helps marketers to focus on key issues. SWOT stands for Strengths, Weaknesses, Opportunities & Threats. Strengths & Weaknesses are Internal factors.
Swot analysis
Strengths could be: 1.Your specialist marketing expertise. 2.A new, innovative product or service. 3.Location of your business. 4.Quality processes and procedures. 5.Any other aspect of your business that adds value to your product or service. Weakness could be: 1.Lack of marketing expertise. 2.Undifferentiated products/services 3.Location of your business. 4.Poor quality goods or services. 5.Damaged reputation.
Swot analysis
Opportunity could be:
1.A developing market such as the Internet. 2.Mergers, joint ventures or strategic alliances. 3.Moving into new market segments that offer better profits. 4.A new international market. 5.A market vacated by an ineffective competitor.
Threat could be:

1.A new competitor in your home market. 2.Price wars with competitors. 3.A competitor has a new, innovative product or service. 4.Competitors have superior access to channels of distribution. 5.Taxation is introduced on your product or service.
What is a product?
Product is anything that can be offered to a market for attention, acquisition, use or consumption, that will satisfy a need. It is considered to be a bundle of benefits or utilities. Classification of products is explained in following :-
Classification of products
Product & Service Classifications: Products fall into two classes based on how consumers use them : 1. Consumer Products 2. Industrial Products Consumer Products are the products bought by final consumers for personal consumption. They include: (a) Convenience Products: These are the products that customer buys frequently, immediately and with a minimum amount of comparison and buying effort. Eg: Soap, Bread, Milk, Tea/Coffee, Tooth Brush/Paste.
c) Specialty Products: These are products with unique characteristics or brand identification for which buyers will make special purchase effort. For these kind of products, buyers can even travel to great distances & spend a lot of time before purchasing. Egs : Expensive Jewellery, Property, Cars, etc. (d) Unsought Products: These are the products that either the customer does not know or does not think of buying under normal circumstances. These products are bought due to emergency situations. Egs : Medical Aids, Life/Medical /Fire
2. Industrial Products: It are those products which are purchased for further processing for use in conducting business or for ReSale. They include: ( i ) Raw Materials & Consumables ( ii ) Components & Parts. ( iii ) Capital Goods : These products help the buyer in production or operation.
Issues and Challenges in Marketing in India

High Volatility in Market: Growth in demand, Volatility in prices, Resulted in challenges of market Forecasting, ST and MT Inventory Mgt for demography Diversity and Convergence: People of all age groupTech savvy & non tech savvy, regional disparities, makes market interesting & highly challenging. Catering to Affluent: Growing segment of affluent customers, Its both emotional and
Issues and Challenges in Marketing in India

Poor Markets Also Need Marketing: Purchasing Power Parity(PPP). Common US definition-poor people who spend up to US $ on the basis of PPP Engaging Customer 24x7: Engaging customers through TV, Radio Channels, Outdoor Advt., and print media. Engaging customer attention though all possible channels. Creativity, Respecting customers right to privacy, Customer
Issues and Challenges in Marketing in India Enhancing Access: Infra problems for accessing product and services Price and Value Major Determinants in Consumer Behavior: Price is an important input in consumer decision. More Important is the value in the offer. New Icons: Customer is empowered with more info about brands & their ambassadors. Indian Global Brands: Era of Indian Brands has arrived Ecology Sensitivity: Products & services are going green. It has implications for product design and communication WOM a stronger Influence in Adoption: The Challenge for
Buyer behaviour
Solomon: Consumer behaviour is the process involved when individuals or groups select, purchase, use, or dispose of products, services, ideas or experiences to satisfy needs and wants Leon G Schiffman and Lesllie Lazar Kanuk: Consumer behaviour can be defined that consumers display in searching for, purchasing, using, evaluating, and disposing of products and services that they expect will satisfy their needs.
Nature of Buyer Behaviour

1.Systematic Process:- Consumer behaviour is a systematic process consisting following steps:

2.Influenced by various factors:- Consumer behaviour is influenced by factors such as: Marketing Personal Psychological Situational Social Cultural

3.Different for Different Customers:- Different

consumers be have differently, the behaviors due to individual factors such as: consumers lifestyle culture Different for Different Products:-Consumers behaviour is different for different product. Some customer want to buy more quality of certain items and Very low quality/ no quantity of few items

Reflects Status:- Those Consumers who own luxury cars, watches and such items are considered by others as persons of higher status Results in Spread-effect:- The buying behavior of
one person may influence the buying behaviour of another person. Customer may prefer to always buy premium

Improves Standard of Living:- Consumers buying behaviour may lead to higher standard of living. The more a person buys the goods & services the higher is the standard of living Under goes a Change:- The consumer behavior under goes a change over period of time depending up on changes in age, education, and income level..

Information Search-The information search is a common characteristic of consumer behaviour. The consumer cannot purchase goods/services if they are not aware of such goods/services Brand Loyalty-Is another characteristic of consumer behavior. Brand loyalty is the tendency of a consumer to buy products/services form a certain Co. that he/she likes or equates with having high
Importance of Buyer Behaviour
Consumer Buying & DecisionMaking Process Post
The Buyer Decision Process

Step 1. Need Recognition:- The buying process
starts when the buyer recognizes a problem or need triggered by internal or external stimuli. With an internal stimulus, one of the persons normal need can be aroused by an external stimulus. A person may admire a neighbors new car or see a television ad for a Hawaii vacation, which triggers thoughts about the possibility of making a purchase.

Step 2. Information Search:- When buyer recognize problem it start to gather information about the solution which is going to fulfill the need or want of buyer. So for information it choose four basic sources. They are as following:-

Step 3. Evaluation of Alternatives:- while gathering
information it find several alternatives . So in this step buyer evaluate the alternatives on the following basis:-

Step -4-Purchase Decision:- In the evaluation stage,
the consumer forms preferences among the brands in the choice set and may also form an intention to buy the most preferred brand. However two factors can intervene between the purchase intention and the purchase decision.

Types of Consumer Decisions :- Based on the level of involvement, Consumers may exhibit three types of problem-solving behavior : 1.Extensive Problem Solving :- It occurs when buyers purchase more expensive, less frequently purchased products in an unfamiliar product category requiring information search & evaluation. 2. Limited Problem Solving:- It occurs when buyers are confronted with an unfamiliar brand in a familiar product category. 3.Routinised Response Behavior :- It occurs when

Step 5. Post-Purchase Behavior:- After the purchase, the consumer might experience dissonance that stems from noticing certain disquieting features or hearing favorable things about other brands and will be alert to information that supports his/her decision. Marketing communications should supply beliefs and evaluation that reinforce the consumers choice and help him feel good about the brand. The marketers job therefore doesnt end with

Step 5. Post-Purchase Behavior
Post-Purchase Dissonance
Post-purchase Dissonance : It is a consumer
reaction after making a difficult decision that

involves doubt and anxiety.
Probability of experiencing dissonance

increases based on: Degree of commitment
or irrevocability
Importance of the decision
Determinants of Buyer Behaviour
Model of Buyer Behaviour
Evaluation of Alternatives in Buying

Evaluation System:- There are four step in evaluation of alternatives in buying process. 1.Evaluation criteria:- consumer first set some criteria for evaluating the alternatives likebrand, packing, taste, price etc. 2.Beliefs:- After the evaluation of alternatives consumer will match it with it his/her belief or expectation or assumption. Ex:- Customer belief over NOKIA mobile. 3. Attitudes:- After the belief of customer, customers attitude also effect the evaluation of alternatives. Suppose a customer have a nature of frequent purchaser of mobile. Then the consumer will purchase those mobile
Buying Habits of Consumers

Habitual Buying behavior
Consumer buys out of habit Groceries, Spa, Strategic Elements: Good location, Convenient Time, Clear product displayed, Product Availability Ads should be reminder oriented Complete the Transactions Quickly & Precisely
Variety seeking Buying Behavior
Brand Switching behaviour --Characterized by Low involvement for purchase But significant brand differences Strategies of Mkt. Leader >>

Complex Buying behavior
This consumers are always being confused in choosing the brand. This consumer willing to buy every thing but get confused in choosing brand, look, feature. This consumers are often being confused in choosing the alternatives. In this type of behavior consumers are never being satisfied over their purchase.
Dissonance reducing buying behavior
Marketing Information Systems

Cundiff, Still and Govoni Marketing Information System is an Organized set of procedures, information handling routines and reporting techniques designed to provide the information required for making marketing decisions K Cox and K Gonod MIS is a set of procedures and methods for the regular and planned collection, analysis and
Characteristics of Marketing Information Systems (MIS)

1. Marketing Information System is a consciously developed master plan for information flow. Its an Ongoing process and operates continuously 2. MIS provides integration and co-ordination among marketing planners, sales force and external environment 3. MIS is a future-oriented. It anticipates and prevents problems as well as solves marketing problems. Its both a preventive as well as a curative process in marketing 4. MIS provides scientific base to marketing with the help of Operations Research techniques
Components of Marketing Information Systems (MIS)
3 main component of MKIS in developing in formation

The three main constituent parts of an MkIS in developing information are : 1. The Internal Reporting Systems 2. Marketing Intelligence System & 3. Marketing Research System Information needed by Managers can be obtained from:
Internal Reporting Systems
Internal data is gathered via customer databases, financial records, and operations reports. Advantages of internal data include quick/easy access to information. Disadvantages stem from the incompleteness or inappropriateness of data to a particular situation.
Marketing Intelligence System

Marketing Research System
Marketing Intelligences the systematic collection and analysis of publicly available information about competitors and trends in the marketing environment. Competitive intelligence gathering activities have grown dramatically. Many sources of competitive information exist.
Marketing Researchi s the systematic design, collection, analysis & reporting of data relevant to a specific marketing situation facing an organization.
Marketing Intelligence
1. Customer Intelligence -Info on customer business, preferences or loyalties, personal demographic details and likes & dislikes 2. Competition Intelligence Info on Strengths and weaknesses of each competitor in the territory, the strategy and tactics being used by them, and how the customer procures competitors brands
Sources of Competitive Intelligence

Company Employees Internet Published Information Other Sources Competitor's Employees Trade Shows Benchmarking Channel Members & Key Customers
MARKETING RESEARCH
Marketing Research is the systematic & objective identification, collection, analysis, dissemination & use of information for the purpose of improving decision making related to the identification & solution of problems & opportunities in Marketing.
Marketing Research
Marketing Research is the 3rd component of MIS. Market Research is the systematic design, collection, analysis and reporting of data and findings relevant to a specific marketing situation facing the company
Market research is only a part of MIS, while MIS is Ongoing system MIS is wider concept than Market Research Difference between Market Research and Management Info System (M I S)
Types of Marketing Research

( I ) Exploratory Research: to gather preliminary information that will help define problems and suggest hypotheses.( uses Secondary Data & Focus Groups ) ( II ) Conclusive Research: ( a ) Descriptive Research: to describe things, such as the market potential for a product or the demographics & attitudes of consumers who buy the product.(Hypotheses Testing)
Qualitative Research & Quantitative Research
Qualitative Research explores attitudes, behaviour & experiences through such methods as Interviews & Focus Groups with the idea of getting an in-depth opinion from participants. Quantitative Research involves analysis of numerical data. It involves the generation of statistics through the use of large-scale survey research, using methods such as questionnaires or structured interviews.
Marketing Research 7 step Process
Market Research Objectives

a)To determine the market penetration of the Co., and its competitors in metros and other than urban cities b)To determine the market the ratio of brand sales to industry sales
(extraction) c)To assess the motivation levels of
strategic Marketing Planning

American Marketing Association : Marketing planning is the work of setting up objectives for marketing activities and of determining and scheduling the steps necessary to achieve such objectives
Segmentation, Targeting & Positioning
Marketing Segmentation
Philip Kotler : Market Segmentation is Subdividing a market into distinctive and homogeneous subgroups of customers, where any group can conceivably be selected as a target market to be met with distinct marketing mix Market Segmentation is defined as the process of defining & sub-dividing a large heterogeneous market into clearly
WHY MARKET SEGMENTATION?

By segmenting the market, the marketer is attempting to break the market in to more strategically manageable parts , which can then be targeted and satisfied far more precisely by developing product and marketing program tailored to each segment.
Better Matching of Customer Needs Enhanced Profits for Business Better Opportunities for Growth Retain More Customers Target Marketing Communications
Factors considered for Market Segmentation 1.Needs / Benefits sought 2.Importance attached to Attributes/Feature 3.Usage Rate 4.Brand Loyalty 5.Purchase Influencers 6.Product Adoption Stage 7.Geographic Location 8.Channel Type
Requirements for Effective Segmentation
Requirements for Effective Segmentation

1.Accessibility: The firm should be able to reach out to the market segments through various distribution & promotion channels economically. 2.Measurability: The variables used for market segmentation should be easily understandable & assessable. 3.Substantiability: The ROI from the selected segments should be attractive & profitable. 4.Actionability: The chosen segments should
Benefits of Market Segmentation

1.Understand potential customers 2.Pay proper attention to particular areas 3.Formulate effective marketing programs 4.Select channels of distribution 5.Understand competition 6.Use marketing resources efficiently 7.Efficient & Customized design of the marketing mix : i.e. Product , Price, Promotion & Place
Limitations of Market Segmentation 1. Markets are not made of segments with different wants, because buyers of one brand buys other brands also. 2. Buyer has Choice list of acceptable brands as alternatives, so it would be incorrect to presume & believe that a brand can be successfully positioned 3. Various brands may be indistinguishable in product form, yet differ in Mkt. Share 4. Mkts. Examined by them were not heavily segmented as differences between brands were too insignificant to matter
Basis for Segmenting Consumer Markets 1. Geographic Segmentation

a) Firms need to find new ways to generate sales
b) Computerized check-out /scanners give
retailers an accurate assessment of which brands sell more in their region c) New Regional brands (packaged goods)
intended to appeal to local preferences d) More Regional approach allows consumer
Basis for Segmenting Consumer Markets 2. Demographic Segmentation

a) Age and Life Cycle Stage Consumer wants & liabilities change with age Child, Young, Adult and Old b) Gender & Sexual Orientation c) Marital Status d) Income e) Social Class f) Family Size g) Occupation h) Educational Level i) Religion
Basis for Segmenting Consumer Markets 3. Psychological Segmentation a) Life Styles b) Personality c) Values d) Beliefs
Basis for Segmenting Consumer Markets 4. Behavioral Segmentation a) Occasions : Regular and Special b) Benefits : Quality, Service, Economy,
Specialty
c) User Status : Non-user, Potential Users, First

time users, Regular Users, Ex-User d) Quantity : Consumed/Usage Rate Light/Medium/Heavy e) Buyer Readiness Stage Unaware Aware Informed Interested, Desired Intended
Basis for Segmenting Consumer Markets
Basis for Segmenting Consumer Markets
Factors Influencing Segmentation Size, Objectives, Resources of the Co. Type of Product and Market Competitive Structure of Industry Nature of Market Life Cycle Stage Competitive Strategy of the Firm
Market Targeting
Once the firm has identified its marketsegment opportunities, it must decide how many and which ones to target.
Market Segmentation reveals opportunities Co.s need to evaluate / identify various segments and decide on targeting the specific market
Procedure of Market Targeting
1. Evaluating Market Segments 2. Selecting Market Segments

1. Evaluating Market Segments
a) Segment Size and essentially a forecast Growth: Potential is
Where MP = Market potential for the product market SP i = Segment Potential in the ith segment n = number of segments formed for the product market b) Segment Structural Attractiveness

2. Selecting Market Segments a) Limited Coverage Market:- Only one or few segments are selected as market targets, its called Limited Coverage Market segmentation. This strategy requires fewer resources b) Selective Specialization:-Co may select a single segment, through concentrated mktg. Co gains a strong knowledge of segments need and Achieves Strong market Presence . Leading to operating

c) Selective Specialization
Co selects a number of segments, each objectively attractive and appropriate. This multi-segment coverage strategy has a diversifying the Cos risk
d) Product Specialization
A Co specialize in making a certain product and sells to several segments. Eg. Microscope

d) Market Specialization
Co concentrates on serving many needs of particular customer group. Eg. A Co sells Assortment of products only University Lab includes : Microscopes, Oscilloscopes, Bunsen burner and chemical Flasks
Procedure of Market Targeting E) Full market coverage:- The firm attempts to serve all customer groups with all the products they might need. Only very large firms such as MICROSOFT, GENERAL MOTORS, COCA COLA xxx undertake a can xxx xxx full market coverage strategy.
xxx xxx xxx xxx xxx xxx
positioning
According to kotler, Positioning is the act of designing the companys offering and image to occupy a distinctive place in the target markets mind. According to Sengupta, The aim of product positioning is to create a perception for our brand in the prospects mind so that it stands that it stands apart from competing brands. We must cover that space in the consumers mind as if we had won a long term lease. We must find a
Importance of positioning
1. To create a distinctive place of a product or service in the minds of potential customers. 2. To provide a competitive edge to a product or service i.e. an attempt to convey attractiveness of
the product or the service to the target market.

3. Place an intangible service within a more tangible
service within a more tangible frame of reference.

4. Help influence both service development and the
redesign of existing services.
Positioning strategies
Errors in positioning
Positioning is undeniably a tough job, and if a marketer attempts to position a product without careful planning, it becomes very difficult to sustain the product in the market and derive a competitive advantage. There are certain errors that might creep up while positioning a product:Under positioning Over positioning Confused positioning Double Positioning
Under positioning
-A scenario in which the customers have a blurred and unclear idea of the brand. A positioning error in terms of communication aimed to educate customers about the brand; this aimlessly occurs commonly when dealing with the electrical, technological advanced products. Lets take current posthumous example of Wi-Fi Technology. Two major competent dominant brands PTCL EVO & WiTribe Both Brands offering the same Wireless internet connectivity, LDI based upstream/downstream but the problem to understand is what is the difference between Broadband DSL Routers which were commonly
Over positioning
A scenario in which the customers have too limited awareness of the brand. Over positioning is a common positioning error created because of a superlative communication model adopted by the marketer, thereby creating a picture in the minds of the audience which is hyper in character and does not fit in with the true product image, which the marketer is trying to communicate. Luxury is beyond the expectations its just a way move high-up from the expected level. A depicting picture of of over positioning error can be of a well known
Over positioning
Rolex Watch, company started its operations in 1905 with passage of time enduring strong customer relationship, build a brand and still having stunning reputation, Rolex recently offered a new affordable swift watch collection to attract new customers having low range, but customer holds a narrow image of the brand and probably thinks that Rolex watches
Confused positioning A scenario in which the customers have a confused opinion of the brand.
Buyers might have a confused image of the brand resulting from the company's making too many claims or changing the brand's positioning too frequently. This was the case with Crest Rejuvenating Effects was a toothpaste positioned for women. They became confused. How were their teeth different from men? Teeth are teeth. More confusion: Crest Rejuvenating Effects reimineralized teeth. Women didnt understand this positioning benefit. What did it mean? It sounded like something straight from a chemistry text. How did one look into the bathroom mirror and determine
Doubtful Positioning
Scenario in which customers do not accept the claims of a brand. Pakistan Telecommunication Corporation Limited (PTCL) that started its operations in January 2001under the brand name Ufone. The motto of Ufone services says To Become the best cellular option for U but when it comes to delivering promises to the valued customers regarding the promotion offered which are normally experienced Double crossed.
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product
Philip Kotler : A Product is a bundle of physical services and symbolic point of View of benefits which are being offered to customer W. Alderson : A product is a bundle of utilities consisting of various features and accompanying
Characteristics of product
Classification of product
1. Based on the nature:a) Goods:- Physical goods are the tangible and physical materials. It has the quality of possession and ownership. Ex:- rice, clothing, etc. b) Service:- These are tangible performances where the consumption and production point is the same. One can use the service by paying for it but cannot claim ownership. Ex:- hospital, banking, etc.
C) Ideas:- Every market offering includes the basic idea at its core. Charley Revlson of Revlson commented that in the factory they make cosmetics, but in the store they sell hope. ex:- consultancy firm, ad agency. d) Experiences:- By orchestrating several
e) Events:- Marketers promote time-based events such as Olympics or movie awards. f) Persons:- Celebrity marketing has become a major business. Different film stars and sportspersons have their own publicity and endorsement agent. g) Places:- Places can be marketed to attract tourist industries etc. ex:- KERALA- Gods own country campaign. h) Properties:- Properties are intangible rights of ownership of either real property or financial
i) Organizations:- Organizations actively work to build a strong favorable image in the mind of their customers. Ex:- Philips uses a tagline, LETS MAKE THINGS BETTER. J) Information:- Information can be produced and marketed as a product. Ex:Dictionaries, Encyclopedias, CBT (computer based training) software.
2. Based on customers intention:-
Product can be classified into two broad categories based on who will use them and how they will be used. There are:A. Consumer product B. Industrial or Business product. Ex:- A light bulb would be considered a consumer product if purchased by a family for their home, but is categorized as a business product if bought by a
A. Consumer products:- Consumer product are those bought by final consumers for personal consumption. Marketers usually classify these goods further based on how consumers go about buying them. convenience product:- The consumer goods which a customer usually purchases frequently and wants immediately and with minimum of efforts are called convenience goods. Ex:- household
Shopping products:- These goods are bought by the customer only after comparing quality, price suitability and style. Specialty products:- There are consumable products which can only be purchased from specialist retailers and which consumer select deliberately. Examples are prescription medicines, alcoholic beverages. Unsought products:- Unsought products are those products which potential buyers do not know that they exist or do not want to
Regularly unsought products:- These are existing products that consumers do not want now, although they may eventually purchase them. Ex:- Life insurance, a lawyer services in preparing a will and a physicians service in giving a cancer check up. New unsought products:- Products that are totally new and unfamiliar to consumers
B. Industrial goods:- A product bought for use in the production of other products or in an organizational operation is an industrial products. Business products can be classified based on their use by business:-
Raw materials:- A raw material is a basic good that actually becomes part of a physical products. Materials and parts are directly used in the production of final products by
Capital equipment:- Capital equipment refers to the large tools and machines used in a production process and operation of the firm. Accessory equipment:- Accessory equipment is used in production or office activities but does not become part of the final physical product being manufactured. Ex:- motors, hand tools, meters, calculators, etc. Component parts:- A component part is a finished item or an item that needs little processing before becoming part of the physical product. Although component parts are used in the
Process materials:-Like a component part, a process material is used directly in the production of another production of another product; however, it is not readily distinguishable from the finished product. Ex:- A company that manufactures cosmetics might purchase alcohol for use in make-up or perfume. Supplies:- supplies are short- lived, low-priced everyday necessity items that aid and expedite the firms operations but do not
Industrial services:- An industrial service is an intangible product that many organizations require in their operations. These services may not be a direct part of production but without these services the production cant carry on. Ex:- financial, legal, marketing services. 3. Based on social benefits:-
From the social aspects, we can
Pleasing Products:- These give high immediate satisfaction, but do harm to consumers in the long run. Ex:- pan masala, cigarette, alcohols etc. Deficient products:- These have neither immediate appeal nor long run benefits. Firms are not interested in such products as there is no chance to make any profit at all. Ex:- typewriter or pager. Salutary products:- They have long run advantages but have no immediate appeals to consumers. Hence, firms are not primarily
Product level
In planning its market offering, the marketer needs to think through five levels of the product. The total product offering and the decisions facing the marketer can be broken down into following key parts: Core product:- The most fundamental level is the core benefit. The fundamental service or benefit that the customer is really buying. A hotel guest is buying rest and sleep. Marketers must see themselves as benefits providers.
Product level
Expected product:- At the third level, the marketer prepares an expected product, a set of attributes and condition buyer normally expect when they purchase this product. Hotel guests expected a clean bed, fresh towel, working lamp, and a relative degree of quietness. Augmented product :- At the forth level, the marketer prepares an augmented product that exceeds customer expectations, i.e. a product containing additional features, services and benefits so that customers is able to
Product level
Potential product:- At the fifth level stands the potential product, which encompasses all the possible augmentation and transformation the product might undergo in the future. Here is where companies search for new ways to satisfy customers and distinguish their offer. All suite hotels where the guest occupies a set of rooms represent an innovative transformation of the traditional hotel product.
Product level
Product line decision

Product line is a group of products that are closely related, functions in a similar manner, and are sold to the same customer groups. Many companies start as a single product item or product line business. After getting a taste of success and with availability of more resources, companies decide to expand their product line and / or introduce newer product lines in consonance with market opportunities or in response to competitors moves. For example, for quite some time, Nirma had only a single detergent brand and subsequently
Product line decision(cont).

Companies make decisions that concern either adding new items in existing product lines, deleting products from existing product lines, or adding new product lines. Another aspect relates to upgrading the existing technology either to reduce the product costs or to improve quality, for stretching (downwards, upwards, or both ways), or line filling. Product managers need to closely examine the sales and

Line Stretching: Product lines tend to lengthen over the years for different reasons such as excess manufacturing capacity, new market opportunities, demand from sales force and resellers for a richer product line to satisfy customers with varied preferences, and competitive compulsions. Lengthening of lines raises costs in many areas and decisions are based on careful appraisal. However, at

Upward Stretch: In this situation, companies operating at low-end may opt to enter highend because of better opportunities as a result of faster market growth, or the need to create an image of full line company. For example, Videocon entered the market with a twin-tub lowend washing machine. Subsequently, after the introduction of IFB automatic washing machine and entry of other players the market expanded. The average household income of middle class also showed positive trends. To take advantage of a market growing at the higher-end, Videocon also introduced an automatic washing machine.

Both-Way Stretch: Companies operating in the medium range of the market may decide to stretch product line(s) both ways for reasons of opportunities arising in different market segments. The main risk is that it may prompt some customers to trade down. However, companies often prefer to retain their customers by providing low-end alternatives rather than losing them to competitors. Line Filling: A company may decide to lengthen the existing product line(s) by adding more items. The possible objectives leading to line
Product line decision(cont.)

they lose sales because of missing items in the lines, excess capacity pressures, and trying to fill up vacant item slots to keep out competitors. For example, Videocon and some other TV and AC manufacturers have introduced models at various price-points right through high-end to low-end. Similarly, IBM, HP Compaq, Acer, and Sony etc. have introduced laptop PCs at various featureprice points ranging from high-end to lowend.
Product line decision(cont.)
Product mix decision

American Marketing Association:-
Product Mix is the composite of products offered for sale by a firm or a business unit Ex:- If an enterprise manufactures or deals with different varieties of soap, oil, toothpaste, etc. the group of all these products is called product mix. A companys product mix has certain decisions to be taken as width, length, depth and consistency.

Product mix length:- No. of Products in a Product
Line
Product mix width:- No. of Product Lines a
company has
Product mix depth:- No. of variants of each product within a Product Line. Product mix consistency:- How closely related the
Factors influencing change in product mix 1. Change in market demand:- The change in the demand of a product (due to fashion, habits, income, attitudes) affected the decision of product mix. 2. cost of production:- If the company can develop a new product with the help of the same labour force, plant and machinery and techniques, it can decide to start the production of that product at lower cost. 3. Quantity of production:- If the production of the new product is considered to be at a large scale and the company can add one more
Factors influencing change in production mix
4. Advertisement & distribution factors:- Advertisement and distribution factors may be the one of the reasons for the changes in production mix. If the advertising and distribution organization are the same, the company may take the decision to add one more item to its product line. 5. Use of residuals:- If residuals can be used gainfully, the company can develop its by products into the main products. Ex:- a sugar mill can profitably develop the production of paper, card board or wine from bagasse. 6. Change in company desire:- keeping in mind the
Factors influencing change in production mix(cont.) the firm may eliminate some of its unprofitable processes or may start a new more profitable product. 7. Competitors actions and reaction :- The decision of adding or eliminating the product may be the reaction of competitors actions. If company thinks that it can meet the competition well by making necessary changes in the size, color, packing or price, it can make such changes. 8. Full-utilization of marketing capacity:- if the company is not getting the desired results
Factors influencing change in production mix(cont.) According to the needs of the mind. 9. Financial resources:- Finance is the life blood of a firm. Availability of finance may necessitate some changes in the product of the company. If the company is short of finances or if the product is continuously going into loss the company may decide to drop the production of such product. Similarly, if company has sufficient funds, it may improve its product.
Product Mix Strategies

Production mix strategies decision are
important for the marketing managers. But it

is divided in three components. They are
following:1. Product line addition and deletion 2. product elimination 3. Product modification
Product Mix Strategies 1. Product line addition and deletion: A firm may add new product items or delete existing ones or do both in its existing productlines. For example:various pack sizes or fragrances for soaps, fuzzy logic and automatic washing machines etc is the addition in product line. Maruti 800 is example of product line deletion. 2. Product modification: - Product modification is the deliberate alteration in the physical attributes of a product or its packaging or its
Product Mix Strategies

3. Product elimination: - There are some products which cannot be improved or modified to suit the market. Here, the profitable alternative would be to withdraw the product from the market. The process of withdrawal is technically called Product elimination. This involves discounting or
Criteria that decides Product Additions/ Deletion BCG Matrix a.k.a. Growth-Share Matrix, Boston
Box, Boston Matrix, Boston Consulting Group analysis. Created by Bruce Henderson for the Boston Consulting Group in 1970 to help corporations with analyzing their business units or product lines. This helps the company allocate resources and is used as an analytical tool in brand marketing, product management, strategic management, and portfolio analysis.
BCG MATRIX
BCG MATRIX
BCG MATRIX
ITC Ltd on BCG Matrix:-
Criteria that decides Product Additions/ Deletion

GE MATRIX
Developed by McKinsey & Company in
1970s. GE is a model to perform business portfolio analysis on the SBUs. GE is rated in terms of Market Attractiveness & Business Strength It is an Enlarged & Sophisticated version of BCG.
GE MATRIX
Market Attractiveness
Business Strength
Strategies for GE MATRIX
Example of TATA
TATA
IT (Information Technology) : TCS

Consumer Durable : Automobiles, Titan etc. Textiles : Tata Fabrics, West Sides etc
GE Matrix For TATA
BCG v/s GE
BCG Market Growth Market share GE Market attractiveness Market strength
4 cell
Multi Products Primary tools
9 cell
Multi business unit Secondary units
Product life cycle

Philip Kotler: The Product Life-Cycle is an attempt to recognize distinct stage in the sales history of
the product
Arch Patton:
The life-cycle of a product has many points of

similarity with the human life-cycle, the
Product life cycle

Stages of Product Life Cycle The lifetime of every product is typically divided into four stages: Introduction: A period of slow sales growth as the
product is introduced in the market. Profits are nonexistent because of heavy expenses incurred in connection with product introduction.
Growth: A period of rapid market acceptance and

substantial profit improvement. Maturity: A period of a slowdown in sales growth because the product has achieved acceptance by most potential buyers. Profits stabilize or decline because of increased competition.
Product life cycle
Product life cycle

Features of Each Stage of the PLC Curve
Product life cycle

Assumptions of Product Life Cycle 1.Products have limited life
2.Product sales pass thro distinct stages each

posing different challenges, opportunities to seller 3.Profits rise and fall at different stages of PLC 4.Products require different marketing, financial, manufacturing, purchasing and
Marketing strategies for PLC stages: 1. Introduction stage

Sales growth is slow Profits are negative or very low Promotional expenditure is at its highest ratio to sales Prices tend to be high because costs are high 2. Growth stage Rapid climb in sales Consumption increases
Product life cycle
Product life cycle

3. Maturity stage Most of the products we see around us today are at the maturity stage in their life cycles , learning marketing managers with the onerous task of coping with all the problems that go with marketing the mature product. The market is dominated by a few giant firms -perhaps a quality leader, a service leader and a cost leader who make profits mainly though high volume and lower cost. Market nichers, including market specialist, product specialist and customizing firms surround
Product life cycle

Volume = number of brand user usage rate per user How to increase number of brand users? Converting non-users Entering new market segments Winning competitors' customers. How to increase usage rate of current users? Use the product on more occasions Use more of the product on each occasions Use the product in new ways.
Product life cycle

4.Decline Stage Sales decline because of :
Technological advances
Shifts in consumer taste and preferences. Increased competition Product Life Cycle Strategies Emergence of substitute products consumer tastes and preferences
Special diagram on plc
PRODUCT LIFE CYCLE STRATEGIES

THE INTRODUCTION STAGE: Starts when the product is first launched . Takes time and the sales growth is slow. Profits are negative or low as sales are low and distribution and promotion expenses are high. As market is not ready to accept product refinement at this stage the firm produces a basic version of the product. Selling is focused on those buyers who are ready to buy. The market pioneer must choose a launch strategy consistent with the intended product positioning. It should realize that it is the first step in the total

If pioneer uses launch strategy to make a killing it sacrifices long revenue for short term gain. As pioneer moves to later stages it will have to continually formulate new pricing , promotion and other marketing strategies.
THE GROWTH STAGE

If the new product satisfies the market, it will enter he growth stage. Sales will start climbing quickly. Early adopters will continue to buy, later buyers will start following their lead especially if they hear

New competitors may now make an entry attracted by the profit opportunities by adding new features Increasing competition leads to an increase in number of distribution outlets Promotion spending may be the same or slightly higher Goal is educating the customers and meeting competition

The firm uses several strategies to sustain rapid growth as long as possible It improves product quality and adds new product features and models It enters new market segments and develops new distribution channels Shifts some advertising from building product awareness to product conviction and purchase It lowers product prices to at the right time to attract more buyers At his stage the firm faces a trade off between high market share and high current profit By spending a lot of money on product

THE MATURITY STAGE
At some point of time the products sales growth slows down and the product enters the maturity stage This stage lasts longer than the previous stages The slowdown in sales growth results in many producers with many products to sell The overcapacity in the market leads to greater competition Competitors begin marking down prices, increasing their advertising and sales promotion The R&D budgets are increased to find better

Weaker competitors start dropping out (decline) The market eventually contains only well established competitors Most successful products are in a stage of continuous evolution to meet changing customer needs and preferences At this stage firms may also chose to modify he market , the product or he marketing mix In modifying the market the firm tries to increase the consumption of the current market It looks for new users and market segments. Looks for ways to increase usage among present customers The firm may also try modifying the product by

It may improve the products quality and performance, its durability, reliability, speed and taste The firm can also try modifying the marketing
mix to improve sales by changing one or

more marketing mix elements. Can cut prices
to attract new users and competitors

THE DECLINE STAGE
At this stage sales of most product forms and brands eventually dip. Decline may be slow or rapid Sales may plunge to zero or they may drop to a low level where they continue for many years Sales decline may be due to technological advances, shifts in consumer tastes, and increased competition As sales and profits decline some firms withdraw from the market Those remaining prune their product offering, drop smaller market segments and marginal trade

Products failing reputation can cause customer concerns about firm and its other products Keeping a weak product delays the search for replacements, creates a lopsided product mix, hurts current profits, weakens companys foothold on the future. Products failing reputation can cause customer concerns about firm and its other products Keeping a weak product delays the search for replacements, creates a lopsided product mix, hurts current profits, weakens companys foothold on the future. Products failing reputation can cause customer

Keeping a weak product delays the search for replacements, creates a lopsided product mix, hurts current profits, weakens companys foothold on the future.
At this stage a firm needs to pay more attention to the ageing products . The firms task is to identify those products in the decline stage by regularly reviewing sales, market share, costs and profit trends The firms has to decide whether to maintain, harvest or drop each of these declining products

May also decide to reposition or reformulate the brand in the hope of moving it back to the growth stage Firm may decide to harvest the product, which means reducing various costs (plant and equipment, maintenance, R&D, advertising, sales force) and hoping that sales hold up. Harvesting, if successful, increases firms profit in the short run Firm may also decide to drop the product from
FACTORS AFFECTING THE LIFE CYCLE OF A PRODUCT

1. Rate of technical change:- Life cycle of a product is affected by the rate of technical change in the country. If the rate of technical change in the country is very high, the life of the products is limited because new and improved products take place of old and existing products. 2. Rate of man at acceptance:- The rate of customer acceptance also affects the life cycle of products. If the rate of market acceptance is high, the life cycle of products in that country is limited. 3. Ease of competitive entry:- The situation of competition in the market also affects the life cycle of the

4. Risk bearing capacity:- The risk bearing capacity of the enterprises have risk bearing capacity, they can keep their product alive in the market for a long period as they can face the challenges of the market very effectively. 5. Economic and managerial forces:- Enterprises having strong economic and managerial forces, can keep their products standing in the market and the life cycle of their product will be longer that of the life cycle of the products of those enterprises having weak economic and managerial base. 6. Protection of patents:- The life cycle of the products is

7. Goodwill of the enterprise:- If the goodwill of the enterprise is good in the market as the producer of good quality products, its product will last long in the market as compared to the products of those enterprises whose goodwill is not good or which are not known to the public much.
Limitations of plc
Every product may not go thro all stages The length of time a product spends in any one stage may vary Some products may move thro entire life cycle in weeks Repositioning of a product can lead to a new life cycle, Repositioning is basically changing
New product development

According to WILLIAM J. STANTON:-
Product development encompasses the adding, dropping, and modification of item specifications in the product line for a given period of time, usually one year. According to LIMPSON and DARLING: Product development involves the adding, dropping, and modification of item specifications in the product line for a given period of time, usually one year.

Factors contributing to New Product Development:1. Changing customer preferences:- The driving force in new product development is changing customer life styles, leading towards a change in the customers preferences and expectations. The changing role of women, growth in the nuclear and stand alone families increase in education and income levels, and a manifold increase in the electronic media also contributes towards changing customers expectations and preferences.

Foster new product development processes.
4. Product life cycle :- In order to maintain growth in

sales and profits, firms decide to drop, or modify, or develop new ( substitute ) products when the existing products reach maturity or decline stages, in products life cycles.
New product development process

1. Idea generation: - The first step of new product development requires gathering ideas to be evaluated as potential product options. It is the stage includes alternative specifications for product concepts utilizing end user analysis or problem analysis. Focus groups and direct observation provide insights for product development. Brainstorming is used for Idea Generation of new product or service
New product development process 2. Idea screening:- The object is to eliminate unsound
concepts prior to devoting resources to them. The screeners must ask at least these questions: i. Will the customer in the target market benefit from the product? ii. What is the size and growth forecasts of the market segment/target market? iii. What is the current or expected competitive pressure for the product idea? iv. What are the industry sales and market trends the product idea is based on? v. Is it technically feasible to manufacture the product?

3. Concept development and testing:- with a few ideas in
hand the marketer now attempts to obtain initial feedback from customers, distributors and its own employees. i . Who is the target market and who is the decision maker in the purchasing process? ii. What product features must the product incorporate? iii. What benefits will the product provide? iv. How will consumers react to the product? v. How will the product be produced most cost effectively?
4. Marketing strategy and development:- How will the

product/service idea be launched within the market? A proposed marketing strategy will be written laying out the marketing mix strategy of the product, the segmentation, targeting and positioning strategy sales and profits that are expected. After testing, the new product manager must develop a preliminary marketing-strategy plan for introducing the new product into the market. The plan consist of three parts:1. The first part describes the target markets size, structure, and behavior; the planned product positioning; and the sales, market share, and profit
5.Business Analysis:- Estimate likely selling price based

upon competition and customer feedback : a. Estimate sales volume based upon size of market b. Estimate profitability and breakeven point c. Identify the market size, d. Operational cost, 6. Product and marketing mix:- Finally it is at this stage that a prototype is finally produced. The prototype will clearly run through all the desired tests, and be presented to the target audience to see if changes need to be made. Ideas passing through business analysis are given serious consideration for development. Companies direct their research and
For the product. Once the prototype is ready the marketer seek customer input. However, unlike the concept testing stage where customer were only exposed to the idea, in this step the customer gets to experience the real product as well as other aspects of the marketing mix, such as advertisement, pricing, and distribution options. 7. Test marketing:- Test marketing means testing the product within a specific area. The product will be launched within a particular region so the marketing mix strategy can be monitored and if needed, be modified before national launch. After designing, the next step is testing the product in the market. The term test marketing is also
8. Commercialization:- It means launching the product. If the test marketing stage has been successful and displays promising results then the product will go for national launch. There are certain factors that need to be taken into consideration before a product will be launched nationally. These are timing, how the product will be launched, where the product will be launched, where the product will be launched, will there be a national roll out or will it be region by region?
Benefits of new product development

1. Product introduced on time: Shorten the time from a products concept initiation to its release to manufacturing. Plan and manage overall duration of the NPI process and each of its phases. Manage change and lifecycle for various deliverables Standardize format and attributes for different deliverables.
2. Higher productivity: Capture and automate company specific new product introduction process steps

Identify and reduce time spent on non-value add activities provide project visibility to all team members to eliminate questions about pending assignments, Focus effort and increase R&D through put.
3. Lower project costs: define, plan, track, and manage project cost Increase the number of projects completed on budget Quickly identify, capture, and resolve action items and risks

4. Greater revenue from new products: -
Provide process visibility to management,

accelerating benefit of implementation,
Improve quality of metrics, and reduce

collection time
focus on the most critical quality initiatives

Achieve timely market introduction of the
Quality Improvement
Product Quality Improvement

Reasons for Quality Improvement : Increased competition from more efficient local Indian & Transnational companies Consumer movement gaining grounds in India (Consumer protection Act & Consumer Courts regularly hear cases of unethical marketing practices Bad product) Quality is an effective tool to fight Competitors. Quality Implications: 1.Perceived Quality
branding
According to American Marketing Association :A Brand is an identifying name, term, symbol,
word/s, design or mark or a combination of

these that distinguishes a product or a company from its competitors. Brand Management is the application of marketing techniques to a specific product, product line or brand . It seeks to increase the
branding
Types of brand
There are mainly 3 types of brand. They are following: Family brand Individual brand Multi brand
Types of brand
Types of brand
Types of brand
Stages of branding
Stages of branding
1. Unbranding:- introduction of a new product unknown to customer. 2. Brand as reference or awareness:- Now the product is introduced by using the brand name. ex:- Taking the name of existing brand/product which is success in the market. 3. Brand as bundle of ideas, Thoughts & images or personality:To make a new product as a brand we require to associate the product with the images or personality. Ex:- Brand ambassador 4. Brand as a icon or identity:- By using the promotion mix the product will become a icon which have a
which brand to select?

A brand name should reflect directly or
indirectly some aspects of the product

It should be distinctive (Eg. Chancellor for
cigarette portrays power, & opulent lifestyle)

It should be easy to pronounce & remember It should be legally protected
Advantages to buyer of branding

A brand name denotes uniform Quality The
consumer has assurance of quality

Brand name make shopping easier
customer spends less time & effort to buy

Competition among brands Leads to Quality improvement Purchasing a socially visible brand gives
disadvantages to buyer of branding

The product price tends to go up Manufacturers, taking advantage of the popularity of their brand names, may reduce the quality gradually Branding creates confusion, Consumers are not able to decide which brand is the best in
quality, because all the brands claim to be
Advantages to Manufacturer of branding Branding is a means of product identification In competitive market, brand names can carve a out niche for themselves thro differentiation Brand loyalty can be developed thro successful promotion Branding gives greater bargaining power to the manufacturer with the dealers because there is already pull in favor of the product, May not require greater push by retailers
Building a Brand Building a strong brand involves efforts to make the product occupy a prominent place in the perceptive mind of targeted customer.
Building a Brand
Positioning Of Products In Indian Market Positioning is basically an attempt by the marketer to compare his brand (product is losing its significance because of brand propagation in most categories of products & services) with a competitive brand or a latent need in the minds of the consumers. Brands could also address the inherent needs in the mind of the consumer & anticipate positioning slots in the minds. Use Situations Emphasizing Tangible Benefits Linking to User Head on Competitive Positioning
Brand equity
Brands have equity because they have high awareness, many loyal consumers, a high reputation for perceived quality, proprietary
assets such as access to distribution

channels or to patents, or the kind of brand
associations (such as personality

associations)
Brand Equity is defined in terms of marketing
Brand equity
Brand equity
BRAND AWARENESS: It is the ability of prospective customers to recall a brand & its product category. BRAND ASSOCIATION: conveys the meaning of the product in terms of how it fulfills a customer need. Brand Associations create positive feelings which create a sense of uniqueness in favors of the Brand. Companies & people who behave in a socially responsible manner are much more
Brand equity
BRAND LOYALTY : It is the physical / emotional
relationship between a company / product & its customers. Brand Loyalty is the biased behavioral response expressed over time by some decision-making unit, with respect to one or more alternative brand out of a set of such brands, and is a function of psychological processes.
Advantages of Brand Loyalty:

1.Generates higher sales volume / profits 2.Gives flexibility in pricing & in the introduction of new products
Brand equity
Methods of Branding
1.Individual Branding: Separate Names for all Products
of one company. Eg : HUL Soaps : Lux, Rexona, Dove, Life Bouy, Pears, Liril, Breeze, etc 2.Umbrella or Family Branding: Blanket Family Name for all Products or separate Family Names for separate Product Lines Eg : Lakme, Ponds, Maggie, Nescafe, etc 3.Corporate Branding: Also known as Endorsement Branding is using Companys Trade Name combined with individual product names. Eg : TATA STEEL, TATA SALT, SONY, GODREJ, BAJAJ, HONDA, TOYOTA, etc. 4.Co -Branding: Associating & promoting two brands
New Four Brand Strategies

Line Extension: Existing brand names extended to new forms, sizes & flavors of an existing product category. Brand Extension: Existing brand names extended to new or modified product categories. Multi brands: New brand names introduced in the same product category. New Brands: New brand names in new product categories.
packaging
Packaging helps in Branding & promoting Brand Loyalty. It also enables the buyers to handle and carry their products with Ease. Moreover, packaging may cut cost marketing costs thus adding to profits.
Qualities of good packaging: 1.Attractive Appearance 2.Convenient for storage and display 3.Shield against damage or spoiling 4.Product description shown on the package
packaging
Importance & Requirement of Export packaging:1)It should be capable of withstanding the hazard of handling & transport 2)It should be easy to handle 3)It should be amendable to quick examination of content 4)It should be easy to identify 5)It should be adequately marked 6)It should be easy to disposed of 7)Packaging must confirm to buyers
packaging
Role of packaging: -
1)It helps to increase sales 2)It adds to the use of a product 3)It helps to promote a product 4)It contributes to safety of a product 5)It helps in storage 6) I helps in product differentiation
labeling
Labeling is regarded as part of packaging decision making involves the consideration of labeling requirements Package Labeling or a Label is any written, electronic or graphic communications on the packaging or on a separate associated Label Label performs several functions:
Identifies product or brand Describes several things about the product Promotes the product through attractive
Purposes of Packaging & Labels

1. Physical Protection: The objects enclosed in the
package may require protection from, shock, vibration, compression, temperature, etc. 2. Barrier Protection: A barrier from oxygen, water vapour, dust, etc., is often required in order to keep the contents clean, fresh, sterile and safe for the intended shelf life. 3. Containment or Agglomeration: Small objects are typically grouped together in one package for reasons of convenience & efficiency. 4. Marketing: The packaging and Label scan be used by marketers to encourage potential buyers to
Purposes of Packaging & Labels 5. Information transmission: Packages & Labels

communicate how to use, transport, recycle, or dispose of the package or product. For certain items like pharmaceuticals, food, medical & chemical products, some types of information are statutatory requirements. Some packages and labels also are used for track & trace purposes. 6. Security:- Packaging can play an important role in reducing the security risks of shipment. Packages can be made with improved tamper resistance to deter tampering and also can have tamper-evident features to help indicate tampering.
Purposes of Packaging & Labels

7. Convenience : Packages can have features that add convenience in distribution, handling, stacking, display, sale, opening, reclosing, use, dispensing, and reuse. 8. Portion Control : Single serving or single dosage packaging has a precise amount of contents to control usage. Bulk commodities (such as salt) can be divided into packages that are a more suitable size for individual households. It is also aids the control of inventory. Eg: selling sealed one -litre -bottles
pricing
Pricing is a managerial task that involves establishing Pricing objectives, identifying the factors governing price, ascertaining their relevance and significance, determining the product value in monetary terms and formulation of price policies & the strategies, implementing them and controlling them for the best results Price is the amount of money charged for a product or service, or the sum of the values that consumers exchange for the benefits of having or using the product or service.
Objectives of Pricing
To Maximize the profits Price Stability Competitive Situation Achieve a Target Returns Capturing markets Ability to Pay Long Run Welfare of the Firm Margin of Profit to Middlemen Resource Mobilization
Importance of Pricing
Product Differentiation getting Blunted Inter-Firm Rivalry Mature Products and Markets Customer Value Perception
Inflation in the Economy

Firm Now Finds Itself in a Dilemma
1. SURVIVAL(short-term objective, i.e. due to heavy competition, changing customer needs, too much production, not enough sales ) 2. RETURN ON INVESTMENT 3. PROFIT MAXIMIZATION 4. MARKET STABILISATION 5. MARKET SHARE LEADERSHIP(lower price due to economy of scale) 6. MEETING / FOLLOWING COMPETITION
PRODUCT DIFFERENTIATED(i.e. car manufacturing -add on purchases) 7.MARKET SKIMMING(enter market with high price, lower as market matures) 8.MARKET PENETRATION(enter market with low price, increase as market stabilizes) 9.EARLY CASH RECOVERY 10.PREVENTING NEW ENTRY(Low price may prevent new entrants)
Factors Influencing Pricing

1. Organizational factors :- Pricing decisions occur on two levels in the organization. Overall price strategy is dealt with by top executives. They determine the basic ranges that the product fall terms of market segments. The actual mechanics of pricing are dealt with at lower levels in the firm and focus on individual product strategies. 2. Marketing mix:- Marketing experts view prices as only one of the many important of the marketing mix. A shift in any one of the elements has an immediate effect on the other three- production, promotion and distribution. 3. Product differentiation:- The price of the product also

4. Cost of the product:- Cost and price of a product are
closely related. The most important factor is the cost of production. In deciding to market a product, a firm may try to decide what prices are realistic, considering current demand and competition in the market. The product, a firm may try to decide what prices are realistic, considering current demand and competition in the market.
5. Objectives of the firm:- A firm may have various objectives and pricing contributes its share in achieving such goals. Firms may pursue a variety of value-oriented objectives, such as

1. Demand:- The market demand for a product or
service obliviously has a big impact on pricing. Since demand is affected by factors like, number and size of competitors, the prospective buyers, their capacity and willingness to pay, their preference etc. are taken into account while fixing the price. 2. Competition:- Competitive conditions affect the pricing decisions. Competition is a crucial factors in price determination. A firm can fix the price equal to or lower than that of the competitors, provided the quality of product, in no case, be lower than that of the competitors .

4. Economic conditions:- The economic inflationary and deflection affect pricing. 5. Buyers:- The various consumer and business that buy a companys product or service may have an influence in the pricing decision. Their nature and behaviour for the purchase of a particular product, brand or service etc. affect pricing when their number is large. 6. Government:- Price discretion is also affected by the price-control by the government through enactment of legislation, when it is
Pricing Methods
There four type of pricing methods. They are
following:-
1. Cost oriented
2. Customer demand oriented
3. Competition oriented
4. Other pricing methods
Pricing Methods
1. Cost oriented pricing:- Cost of production is the most
important variable and most important determinant of its price. There may be many types of cost such as fixed cost, variable cost, total cost, average cost and marginal cost etc. An analytical study of these costs must be made for determining the price of a product. Methods of determining price on the basis of cost are as under: Mark-up pricing or cost plus pricing method:- In the method, the marketer estimates that total cost of producing or manufacturing the product and then adds it a mark up or the margin that the firm wants. This is indeed the most elementary pricing method
Pricing Methods
This method assumes that no product is sold at a loss. This method is used when there is no competition in the market or when the cost of production of a product of all the manufactures is almost equal and the margin of profit of all the manufactures is also equal. This method is used in retail traders also. This method of pricing is based on a simple arithmetic of adding a fixed percentage of profit to the unit cost. Full cost or absorption cost pricing:- Absorption cost pricing or full cost pricing rests on the estimated unit cost of the product at the normal level of
Pricing Methods
selling price of the product is arrived at by adding the required margin towards profit to such total costs. This method is also known as full cost pricing since it envisages the realization of full costs from each unit sold. Advantages: Full-cost pricing offers a means by which fair and plausible prices can be found with ease and speed, no matter how many products the firm handles. Prices based on full cost look factual and
Pricing Methods
Firms preferring stability use full cost as a guide to pricing in an uncertain market where knowledge is incomplete. In cases where costs of getting information are high and the process of trial and error is costly, they use it to reduce the cost of decisionmaking. In practice, firms are uncertain about the shape of their demand curve and about the probable response to any price change. This makes it too risky to move away from full-cost pricing. It is difficult, expect ex-post, to identify and compute direct costs. Fixed cost must be covered in the long run and
Pricing Methods
Marginal cost or Incremental cost pricing method:Here, the company may work on the premise of recovering its marginal cost and getting a contribution towards its overheads. This method works well in a market already dominated by giant firms or characterized by intense competition and the objective of the firm is to get a foothold in the market. This pricing procedure is often adopted when the firm: Wants to introduce its product into news markets, Faces stiff competition in the market, Has unutilized capacity
Pricing Methods
at which there is no profit and no loss. Therefore, this method is also known as NO PROFIT NO LOSS PRICING METHOD. Rate of return or Target pricing method:- under this method of price determination, first of all, a rate of return desired by the enterprise on the amount of capital invested by it is determined. The amount of profit desired to the enterprise is calculated on the basis of this rate of return. 2. Customer demand- oriented pricing:- The basic feature of all these demand-based method is that profits can be expected independent of the costs involved, but are dependent on the demand. This pricing method
Pricing Methods
What the traffic can bear pricing:- Pricing based on
what the traffic can bear, is not a sophisticated method. It is used by the retail traders as well as by some manufacturing firms. This method brings high profits in the short term. But what the traffic can dear is not a safe concept. Chance of errors in judgment are very high. Also, it involves trial and errors. It can be used where monopoly/oligopoly conditions exist and demand is relatively inelastic to price. Skimming based pricing:- Setting a high price for a new product to skim maximum revenues layer by layer from segments willing to pay the high price.
Pricing Methods
3. Competition-oriented pricing policy:- Most of
companies fix the prices of their products after a careful consideration of the competitor's price structure. Deliberate policy may be formulated to sell its products in the competitive market. Four policy alternatives are available to the firm under this pricing method: Parity pricing or going rate pricing:- Under this method, the price of a product is determined on the basis of the price of competitors products. This method is used when the firm is new in the market or when the existing firm introduced a new product in the market.
Pricing below competitive level or discount pricing:Discounting pricing means when the firm determines
Pricing Methods
Pricing above competitive level or Premium pricing:Premium pricing means where the firm determines the price of its product above the price of the same products of the competitors. Price of the firms product remains higher showing that its quality is better. The price policy is adopted by the firms of the high repute only because they have created the image of quality producer in the minds of the public. They became the market leader. Competitive bidding/sealed bid/tender pricing:- Another form of competitive oriented pricing is the sealed bid pricing. In a large number of projects, industrial marketing and marketing to the govt. , suppliers are
Pricing Methods
4. Other pricing methods :- There are some major other
pricing methods are as follows: Value based pricing:- Goods pricing starts with a complete understanding of the value that a product or service creates for the customers. Valued based pricing uses buyers perceptions of value, not he sellers cost, as the key to pricing. Uses buyers perceptions of value rather than sellers costs to set price. Measuring perceived value can be difficult. Consumer attitudes toward price and quality have shifted during the last decade. Introduction of less expensive versions of
Pricing Methods
Pricing Methods
Affordability based pricing:- This method is relevant
in respect of essential commodities, which meet the basic needs of all sections of people. The idea here is to set prices in such a way that all sections of the population are in a position to try and consume the products to the required extent. The price is set independent of the costs involved, often an element of state subsidy is involved and the items are.
Prestige based pricing:- As a purchasing motivation ,

prestige is rarely openly admitted. Many buyers do not realize that this might be their prime motivation for wanting to posses a particular item. At best, they might see the motive , as the desire to possess
Pricing Methods
Market and demand based pricing:- In this pricing method marketer have to understand the relationship between the price and demand for its product. And also see how it vary in different types of market: Under pure competition:- Many buyer & sellers, nominal price Under monopolistic competition:- Many buyers & seller, differentiate the product with other competitors product and determine the price on that basis.
Pricing Methods
Cycle based pricing: - Cyclical pricing is based on the cyclical variations of economic activity. Time series data reveals that economic/business activity exhibits cyclical variations that are termed as business/trade cycles.
Pricing strategies
There are seven types of strategy. They are following:Price Discounts and Allowances
Geographic Pricing Strategy

New Product Pricing Strategy
Promotional Pricing Strategy

Discriminatory Pricing Strategy
Pricing strategies
Price Discounts and Allowances:- The role of discount offering discounts can be a useful tactic in response to aggressive competition by a competitor. However, discounting can be dangerous unless carefully controlled and convinced as part of your overall marketing strategy. It is common strategy in several industry. Types of discount:Cash and settlement discount:- These are intended to bring payments in faster. Quantity discount:- eg:- 5% extra on purchase
Pricing strategies
Geographic pricing strategy:- A firm may charge a
premium in one market, penetration price in another market and discounted price in the third. New product pricing strategy:- In pricing a new product generally two kinds of strategies are suggested :-
Market penetration:- While entering the market, new

entrepreneurs may set a relatively low price. This is mainly to secure a large share of the market. In a highly price sensitive market, the businessman may continue to sell his product even without profit. He is interested in growth rather than making profit. In the market penetration objective, the unit cost of
Pricing strategies
Market skimming:- It means utilizing the opportunities in the market to reap the benefits of high sales, increased profits, and low unit costs. Some of the entrepreneurs study the buyers needs and try to provide the suitable goods and charge the high prices. Making profit in short time period. Promotional pricing strategy:- There are several pricing techniques to stimulate early purchase: Complementary pricing:- This strategy is used by a firm that has customers with high transaction
Pricing strategies
Loss leader strategy:- Loss Leaders are goods or
services offered at steep discounts (generally below cost) in order to attract new customers to a store. Special event pricing:- festival seasons offer pricing , seasonal pricing Cash rebates:- ex:- money back guaranteed .
Low interest financing:- Instead of cutting the price

the company can offer customer low interest financing.
Pricing strategies
Discriminatory pricing strategy:- Many companies sell
the same product or service to different customer groups at different prices. Price discrimination enables some customers or segments to pay less. This brings in more overall contribution to company than if one price is charged to all. For example, Indian Railways offers reduced railways fares to senior citizens. Some airlines offer reduced fares to more frequent users of their service, or passengers in luxury and economy class pay different fares. Customer segment pricing:- Different customer groups are charged different prices for the same product or service. Ex:- railway special discount to senior
Pricing strategies
Image pricing:- Some companies price the same product two different levels based on image differences at. A perfume manufacture can put the perfume in one bottle, give it a name and image, and price it at RS. 50. It can put the same perfume in another bottle with a different name and image and price it at RS. 200. Channel pricing:- Coca-cola carries a different price depending on whether it is purchased in a fine restaurant, a fast food restaurants, or a vending machines. Location pricing:- The same product is priced different at different locations even through the cost of
Pricing strategies
Product mix pricing strategy:- Price setting logic must be modified when, the product is part of a product mix. Product line pricing:- companies normally develop product lines rather than single products and introduce price steps. In many lines of trade, sellers, use well established price points for the products in their line. A mens clothing store might carry mens clothing store might carry mens suits at three price levels:- 800, 1500,2000. Operational-featuring pricing:- In a product as much as features are added the price goes up. EX:- In Car as the features of power window, ABS, etc are
Pricing strategies
2. Two product pricing 3. By product pricing 4. product-bundling pricing 5. Premium pricing
6. Premium pricing
Price setting process

1. Selecting the pricing objectives:- Developing pricing
objectives is necessary because all subsequent decisions are based on objectives. Objectives must be consistent with companys overall objectives and marketing objectives. As stated earlier, companies generally have multiple pricing objectives keeping in view their short-term and long-term interests. No company can remain satisfied with just one unchanging pricing objective. All companies typically alter their pricing objectives over time in response to changes occurring in the market-place. In terms of priority of objectives,

2. Determination of Demand:- Demand determination of a
product is the responsibility of marketing manager, aided by marketing research personnel and forecasters. Demand and competition typically set the upper limits of price. Demand forecasts furnish estimates of sales potential of a product reflecting the quantity that can be sold in a specified period. These estimates help in examining the relationship between products price and the quantity likely to be demanded. 3. Estimating cost:- Demand sets a ceiling on the price the company can charge for its product. Costs set the floor. The company wants to charge a price that covers its cost of producing, distributing and selling the product, including a fair return for its effort and

Variable costs:- These cost vary directly with the level of production 4. Analyzing competitors costs, prices and offers:- Within the range of possible prices determined by market demand and company costs, the firm must take the competitors costs, prices and possible price reactions into account. 5. Selecting a pricing methods:- While selecting the final price, the companies should adopt the following one of the method:-
I. II.
Cost oriented price Competitors oriented price

company must consider some additional factors. They are following:I. psychological pricing II. Companys pricing policies III. Impact of price on the other parties IV. Influence of other marketing mix element
Initiating & Responding to Price Changes
Different ways cos responD to Higher Costs or Over -demand without raising prices
Shrinking the amount of the product Substituting less expensive materials or ingredients Reducing or removing product features Using less expensive packaging Reducing the number of sizes and models offered Creating new economy brands
Factors to be Considered while Increasing or Reducing Prices

Strength of Product Competitors Pricing Strategy Elasticity of Demand Market Structure Cost Structure State of Economy Market Conditions
Customers Actions to Price Changes

The Product is not good in quality The Product is not selling in the market The Promoter Company is in Crisis The Product will no longer be in the market and soon will be replaced by new product The Quality of the product has been deteriorated The price may lower down further
Competitors Actions to Price Changes

1)Intention:- Co has to understand why its competitor
has changed the price 2)Duration:- Co has to anticipate whether the change is temporary or permanent 3)Forecasting :- Co has estimate what would happen in market share & profitability if it responds to the price change 4)Counter Reaction:- Co should ponder over the counter reaction of its competitor in response to
Strategies Followed by Leaders

1)Maintenance of Price 2)Maintenance of Price Along with Addition of Value 3)Increase of Price Along with Improving Quality 4)Reduction of Price 5)Introduction of Low-price Alternatives

1)Maintenance of Price Leaders may have to maintain price, if it finds any of the following cases:
1.Price reduction will bring down a large amount of profit 2.Price reduction will tarnish the image of the product and the company 3.Keeping same price will not cause much loss in market share Maintenance of same price may result negatively: 1.Competitor becomes confident & more motivated to unsettle the leaders 2.Sales force of the leaders may get demotivated

2)Maintenance of Price Along with Addition of Value: Keeping the same price, the leader may improve its product features, services and other offerings 3)Increase of Price Along with Improving Quality Instead of Reducing the price, the leader may introduce enhance quality and charge higher price 4)Reduction of Price:
The leader may finally responds by lowering the price. The reasons would be:

b) The leader does not want to loose price sensitive customers c) The leader finds out that regaining market share is costly than lowering the price & operating at lower margin 4)Introduction of Low-price Alternatives:
The leader could introduce low cost alternative to fight against the price cuts Eg: Indian automobile and FMCG companies frequently introduce low cost models, variants, and brands to combat the price cuts Nirma Rose soap was launched aggressively by Nirma
Marketing communication
Marketing Communication and Promotion are used interchangeably Promotion compasses all the tools in the marketing mix whose major role is persuasive communication --Philip Kotler Promotion includes Advertising, Personal Selling, Sales Promotion and Other selling Tools --Stanton
Nature of Marketing Communication 1)Constant Activity 2)Information Transaction 3)Differentiating Act 4)Reminding Act 5)Informing Act 6)Persuading Act 7)Human Skill 8)Interpersonal Element 9)Marketing Tool 10)Customer Oriented
Integrated Marketing Communication
IMC is a planning process designed to assure that all brand contacts received by a customer or prospect for a product, service or Organization are relevant to that person and consistent over timeAmerican Marketing Association Objectives of IMC : 1) Building Brand Equity 2) Providing Information 3) Manage Demand & Build Sales 4) Differentiate Products
Participants in IMC
Participants in IMC
There are 5 participants in the integrated marketing communication:-
1. Advertisements:- This are the key participants in the

process. It helps to create awareness among the customers. 2. Advertisement agency:- Many organizations use an advertising agency an outside firm that specializes in the creation, production and/or placement of the communications message and that may provide other services to facilitate the marketing and promotion process. 3. Media organizations:- It are another major participant in the advertisement and promotions process. The
Participants in IMC
Communication message. 4. Marketing Communication:- this is the next group of participant are organization that provides specialized marketing communications service. It include the direct marketing agencies, sales promotion agencies and interactive agencies and public relation firms. 5. Collateral services:- The wide range of support functions used by advertisers, agencies, media organizations and specialized marketing communications firms. These individuals and companies perform specialized functions the
Process of imc
Process of imc
1. Identify the target audience:- The marketing
communicator must have a clear target audience in mind. The audience may be potential buyers or current users, those who make buying decisions or those who influence it. 2. Determine the communication objective:- This is what the marketer wants to achieve. To do this, it needs to know where the target audience now stands and what stage/or state it needs to be moved it. The purpose of marketing communication is to move the customer along these stages and ultimately to achieve final purchase. 3. Design the message:- Ideally the message
Process of imc
but the AIDA framework suggests the desirable qualities of a good message. To create a effective message 3 thing are required : Message content:- It can be of three typea) Rational appeal b) Emotional appeal c) Moral appeal Message structure:- It also divide into 3 types-
a) Make the customer to think about the ad and find their own conclusion. b) Always present the both side have to present. ex:- strength & weakness of the product.
Process of imc
c) Always start or present with strong argument. Message format:- What will be the message of the
AD? What colour is to use? What will be the headline?
4. Selecting the message source:- Message source refers

to the company, the brand name, the salesman, the actor in the advert who endorses the product, i.e. today many companies using celebrities, and other drama artists to endorse their advertise the message source. 5. Choosing the media:- choose the media means how to promote the message. Ex:- T.V., RADIO,
Process of imc
Process of imc
Managing IMC Process

1) Integrating Overall Marketing Programs with Promotional Activity 2) Integrating Media for Campaigns 3) Integrating Brand Strategies and Promotional Delivery in different Markets 4) IMC programs for Trades and Consumer Channels
Benefits of IMC
1)Consistency of Message Delivery 2)Corporate Cohesion 3)Client Relationships 4)Interaction 5)Motivation 6)Participation 7)Measurability
Challenges in IMC
Top Management Support Organizational Barriers Cultural Barriers
Promotion mix
The Promotion-Mix is a specific mix of Advertising, Personal Selling, Sales Promotion, Public Relations & Direct Marketing tools that a company uses to pursue its marketing objectives.- PHILIP KOTLER.
ELEMENT/Tools of Promotional Mix

1)Advertising 2)Personal Selling 3)Sales Promotion 4)Publicity 5)Public Relations 6)Direct Marketing 7)E-Com/Internet Marketing 8)Sponsorship
ELEMENT/Tools of Promotional Mix 9)Exhibitions
10)Packaging
11)POP (Point of Purchase) Displays
12)Corporate Communications/Identity
13)WOM (Word of Mouth) 14)Customer Service 15)Trade show & Exhibition
Factors Influencing Promotion Mix / IMC
Advertising
American marketing association Advertisement is any form of paid non-personal presentation of ideas, goods or services by an identified sponsor.
Characteristics of Advertisement:1. 2. 3. 4. 5. 6. Mass-communication process Informative in action Persuasive act Competitive act Paid- for Identified sponsor
Difference between Advertising & Sales Promotion
Difference between Advertising & Sales Promotion
Objective of Advertisement
1. To increase demand 2. To sell a new product and to build new brands. 3. To educate the masses 4. To build brand preference 5. To build goodwill 6. To attract and to help middleman 7. To support salesman 8. To remind the customers of the product and company 9. To reach customers left out of salesman 10. To inform about changes in marketing mix 11. To neutralize competitors advertisement 12. To enter in new geographical area
Advantages of Advertising
Advantages to manufactures:-
i. Increased sales ii. Steady demand iii. Lower costs iv. Greater dealer interest v. Quick turnover and smaller inventories vi. Supplementing salesmanship vii.Encouragement to better performance viii.Creation of goodwill
Advantages to consumers:i. ii. iii. iv. v. i. ii. iii. Facility of purchasing Improvement in quality Elimination of unnecessary intermediaries. Consumers surplus Education of consumer Advantages to middleman:It guarantees quick sales It acts as a salesman It makes possible retail price maintenance Advantages to society:-
i. Encouragement to research
ii. Sustaining the press iii. Change in motivation iv. Encouragement to artists v. Glimpse of national life
Disadvantages of advertisement
i. Multiplication of needs ii. Misrepresentation of facts iii. Consumers deficit iv. Increased cost v. Wastage of national resource vi. Barriers to entry vii. Product proliferation viii.Differed revenue expenditure ix. Managerial difficulties
A.I.D.A MODEL
AIDA model is initiatory and simplest. AIDA model was presented by Elmo Lewis to explain how personal selling works. It shows a set of stairstep stages which describe the process leading a potential customer to purchase. The stages, Attention, Interest, Desire, and Action, form a linear hierarchy. Exp:- Reliance Communication GSM Launch. Attention:- can elaborate by advertisement where Mukesh Ambani spoke about the new project being introduced on his fathers 70th birthday.
Interest:- is generated as the company
A.I.D.A MODEL(contd.)
Desire:- was created with various offers like free SMS, 40paise STD calls, 5Rs./day, Lifetime validity and various coupons etc. Action:- In the last stage people are moved to action in the form of buying product/Service etc. It demonstrates that consumers must be aware of a product's existence, Be interested enough to pay attention to the product's features/benefits, and Have a desire to have benefits from the product's offerings. Action, the
Advantages
Simplest Explain how Personal Selling works A set of stair-step stages Describe the process leading a potential customer to purchase
Sales promotion
Sales promotion offers short-term incentives to encourage purchase or sales of a product or service. According to philip kotlerpromotion encompasses all the tools in the marketing mix whose major role is persuasive communication.
Sales Promotions are of two types : 1.Trade Promotions
Types of Sales promotion

Trade Promotions:- Trade Promotions are targeted at Channel -members (Wholesalers & Retailers) to motivate them to carry the companys products & promote them more effectively / aggressively. Trade Promotions assist in implementing the companys Push Strategy. Consumer Promotions:- Consumer Promotions are targeted at consumers in order to
Sales Promotion Tactics
Characteristics of Sales Promotion

1. Irregular/non-recurring activity:- Its is done only when the sales goes down. 2. Target action:-Sales promotion is done only for the reach the target market. 3. Action focused:- There is no doubt that sales promotion is action focused. Advertisement may be designed to build a brand image and personal selling mat be designed to build long term relationship. 4. Motivation and extra incentive 5. Acceleration tool:- Some tools are designed to speed up the selling process and maximizes sales promotion.
Characteristics of Sales Promotion

7. Planned Activity:- Sales promotion is generally
planned as a specific marketing event which

is planned properly it will stimulate the sales.
8. Means of marketing communication

9. Element of promotion mix 10. Universal activity.
Objective of Sales promotion

1. 2. 3. 4. 5. 6. To introduce new product To attract new customers To induce present customers to buy more To help firm remain competitive To increase sales in off season To increase the inventories of business buyers 7. To develop patronage habits among customers 8. To educate the customers
Methods of sales promotion

The methods of sales promotion is classified in three ways. They are following:1. Consumer promotion:- To make sale promotion to directly to consumer following tools are used: Free distribution of samples. Coupons Bonus offers Money refund offer Temporary price reduction Contests( win the contest and u can win brand new car) After sales service

2) Middleman promotion:- Incentive programmers for dealers aim at obtaining maximum cooperation from distribution channels such as wholesalers and retailers, who from the vital link in the distribution chain. Two communicate with the middleman company used following tools to make promotion: Buying allowance discount Buy-back allowance Display and advertisement allowance Push money Free gift

3.Sales force promotion:- Personal selling by far is the
most important method of sales promotion. To make it highly effective, sales force promotion schemes are felt. The tools for sales force promotion are: Bonus to sales force Sales force contest Sales meeting, salesmans convections and conferences
Advantages of Sales Promotion

1)Helps in getting New Customers 2)Helps in stimulating Middlemen 3)Helps in motivating demand during offseason 4)Helps in facing the competition 5)Helps Sales Force Promotions Sales force bonus; sales meetings, education, new products & products selling techniques
Direct marketing
Direct Selling is the direct personal presentation, demonstration & sale of products / services to consumers, usually in their homes or at their jobs. Direct Selling is a retail channel for the distribution of goods / services, by selling products, personto-person away from a fixed retail location. Characteristics of direct marketing Interaction Targeting Control continuity
Channel of direct marketing

1. 2. 3. 4. 5. 6. 7. Direct (face to face) selling Mail order marketing/Catalogue marketing Direct mailing Telemarketing Direct response marketing Tele shopping/ Home shopping Database marketing
Advantages of Direct Marketing

1.Customization 2.Selective Reach 3.Response Driven 4.Effectiveness can be measured 5.Edge over Competitors 6. Rapid delivery 7.Cost effective 8.Relationship marketing
disadvantages of Direct Marketing May be seen a competing with existing intermediaries Costs Fraud Waste Lack of awareness Privacy concern
Personal selling
Personal selling is oral presentation in a conservation with one or more prospective purchases for the purpose of making sales. Characteristics of personal selling: personal contact with customer Oral conservation Quick solution of queries More expensive approach Real sale Slow speed of sales Maintain the Sales records More flexible
Personal selling
Objectives of Personal Selling:-
1.Building Product Awareness

2.Creating Interest
3.Providing Information
4.Stimulating Demand 5.Reinforcing the Brand.
Personal selling
The Personal Selling Process:1.Prospecting 2.Pre -Approach 3.Approach 4.Presentation 5.Handling Objections 6.Closing the Sale 7.Post-Sale Follow-up.
Personal selling
1. Prospecting
Prospecting refers to identifying and developing a list of potential clients(Leads). Sales people can seek the names of prospects from a variety of sources including trade shows, commercially-available data bases or mail lists, company sales records and in house databases, website registrations, public records, referrals, directories and a wide variety of other sources. Prospecting activities should be structured so that they identify only potential clients who fit the profile and are able,
Personal selling 2. Pre Approach

During the Pre-approach phase of the Personal Selling process, sales professionals try to understand the prospect's current needs, current use of brands and feelings about all available brands, as well as identify key decision makers, review account histories(if any), assess product needs, plan/create a sales presentation to address the identified and likely concern soft he prospect and set call objectives.
Personal selling
3. Approach
This is the point of the selling process where the sales professional meets and greets the prospect, provides an introduction, establishes rapport that sets the foundation of the relationship, and asks open-ended questions to learn more
Personal selling
4. Presentation
During the presentation part of these ling process, the sales professional tells that product "story in away that speaks directly to the identified needs and wants of the prospect. A highly customized presentation is the key component of this step. At this point in the process, prospects are often allowed to hold and/or inspect the product and the sales professional may also actually demonstrate the product. Audio visual presentations and/or slide presentations may be incorporated at this stage and this is usually when sales brochures or booklets are presented to the prospect.
Personal selling
5. Handling
Objections When prospects offer objections, it often signals that they need and want to hear more in order to make a fully-informed decision. Uncovering objections, asking clarifying questions, and over coming objections is a critical part of training for professional sellers and is a skill area that must be continually developed because there will always be
Personal selling
6. Closing the Sale
Although technically "closing a sale happens when products or services are delivered to the customer 's satisfaction and payment is received, but for practical purposes one can define Closing as, Asking for the Order and adequately addressing any final objections or obstacles. Too many sales professionals are either weak or too aggressive when it comes to closing. If you are closing a sale, be sure to ask for the order. If
Personal selling
7. Post-Sale Follow-up
After an order is received, it is in the best interest of every one involved for the sales person to follow-up with the prospect to make sure the product was received in the proper condition, at the right time, installed properly, proper training delivered, and that the entire process was acceptable to the customer. This is a critical step in creating customer satisfaction and building long-term relationships with customers.
Advantages of Personal selling

Allows Two-way Communication Customizing (Tailoring) the Message Lack of Distraction Involvement in the Decision Process
Source of Research Info
Disadvantages of personal selling Sales Force ManagementConflicts High Costs Limited Reach Potential Ethical Problems
Sales force design

Designing a sales force that is effective and appropriate requires some planning and understanding of the product, the market and the intent of the sales force first.
Steps in designing sales force
Steps of designing sales force
1.Sales force objectives
Steps of designing sales force Sales force structure

Company can divide it sales force as per it product line. Sales force structure is combination of four structure:1. Territorial sales force structure:- Each sales person is assigned to an exclusive geographic area and sells the companys full line of product and service to all customers in that territory. 2.Product sales force structure:- Sales person should know their product especially when the product are numerous and complex. 3. Customer sales force structure:- Companies in now day are creating sales force of two types, one for

4. Complex sales force structure:company who have a wide variety of products to many types of customers over a broad geographic area , it often combines the several types of sales force structures.

Sales force size
Sales force size is determined on three basis. They are following:1. Work load method:- if the work load is very high than to distribute the work load equally on equal shoulders. 2. Sales potential method:- As per the target the company , first see that which sales unit is giving its full potential they are given the highest amount of sales target. 3. Incremental method:- In companies it is the
Compensation:In what basis this sales force are compensate is determined by the organization. Ex:- salary, commission on per sales, target basis like call centre etc.
MARKETING CHANNELS
According to Philip kotler
Every producer seeks to link together the set of marketing intermediates that best fulfill the firms objectives. This set of marketing intermediates is called the marketing channels.
Characteristics of marketing channels: Route or pathway:- Channel of distribution is a pathway or route through which goods and service flow from the manufactures to customers. Flow:- The flow of goods and service is smooth and sequential and usually unidirectional. Composition:- It is composed of intermediaries, such
MARKETING CHANNELS
Characteristics of marketing channels(cont.) Functions:- The intermediaries perform such functions which facilitates transfer of ownership, title and possession of goods and services from manufactures to customers. Remuneration:- The intermediaries are paid in the form of commission for the services rendered by them. The same is compensated by the manufacturer in the form of commission allowed by the manufacturer added in the price of the goods sold. Time utility:- As they bring goods to the consumers when needed Convenience value:- As they bring goods to the
Functions of marketing channels

1. Information provider:- Middleman have a role in providing information about the market to the manufacturer. Ex:- changes in taste or style etc. 2. Price stability:- Maintaining price stability in the market is another function a middleman performs. 3. Promotion:- Promotion the product in his territory is another function that middleman perform. Many of them design their own sales incentive programmers, aimed at building customers traffic at the other outlets. 4. Financing:- Middleman finance manufactures operation by providing the necessary working
Functions of marketing channel

Title Help in production function Matching demand and supply
Pricing
Matching buyer and sellers
Need for Channels

Intermediaries/Channels to perform:
To Buy large variety of goods and can compare
costs, prices & to make right recommendation to

their customers To be aware of environment in which they operate and hence isolate the Co's from the direct impact of these local conditions To reduce number of touch points. The Co. will not be able to meet the demands of thousands of its
Types of marketing channels

There are three types of marketing channels. They are following:-

1. Direct marketing channel:- This is the shortest
channel a producer can adopt for distribution of goods and services. In this system, goods move directly from the producer to the producer to the consumers without any middleman or a merchant. In this channel following methods of selling are adopt:Selling at manufactures plant Door to door selling Sales by mail order method. Sales by opening own shop

2. Indirect marketing channel:- it means distribution of
goods through middleman or intermediaries. Typical indirect channels of distribution:-

3. Holistic distribution channel:- Today with the
proliferation of customer segments and channel possibilities more and more companies have adopted multi channel distribution systems.
Steps involve in designing channel system
Channel Management
Emergence of distribution channels could be attributed to the need for facilitating exchanges by speeding-up the timeconsuming matching process between buyers and sellers.Robinstein and Wolinsky.
Channel Management Decision

Recruiting Channel Members Considerations for Effective Recruitment Recruitment as a Continuous Process Selecting Channel Members Criteria for selecting Channel Members Selection Process of Channel Members Training Channel Members Motivation for Channel Members Strategies to Motivate Channel Members Evaluating Channel Members
Channel Management Decision
Methods of Evaluating Channel Members Performance

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Presented by:Anand chaubey (uom)

Meaning and Definition of Markets

It is Customer Oriented: That is, marketing firm is to be

It is Mutuality of Benefits: Exchange of goods and

Difference between marketing & selling concept

Difference between marketing & selling concept

Marketing orientation vs other orientation

Objectives of marketing management

Task of marketing management

4cs of marketing management

Marketing management process

Researching & Selecting Target Markets

Designing Marketing Strategies

Planning Marketing Programs

Organizing, Implementing & Controlling Marketing efforts

Customer Value & Satisfaction

Customer Life time Value (CLV)

Value Delivery Process

Customer Value Chain - Value & Satisfaction

Process for Planning Customer Value Delivery Strategy

Identifying value activities

Identifying value activities

Conducting a value chain analysis

Value delivery process

Types of marketing environment

Factors effecting marketing environment

Various Environmental Components

Various Environmental Components

Various Environmental Components

Various Environmental Components

8) International or Global Environment:

Macro Environmental Analysis :PEST Analysis

Macro Environmental Analysis :PEST Analysis

Various Environmental Components

Various Environmental Components

Threat could be:

Issues and Challenges in Marketing in India

Issues and Challenges in Marketing in India

Nature of Buyer Behaviour

Nature of Buyer Behaviour

Nature of Buyer Behaviour

Nature of Buyer Behaviour

Nature of Buyer Behaviour

Nature of Buyer Behaviour

Importance of Buyer Behaviour

Consumer Buying & DecisionMaking Process Post

The Buyer Decision Process

The Buyer Decision Process

The Buyer Decision Process

The Buyer Decision Process

The Buyer Decision Process

The Buyer Decision Process

The Buyer Decision Process

reaction after making a difficult decision that

Probability of experiencing dissonance

Determinants of Buyer Behaviour

Model of Buyer Behaviour

Evaluation of Alternatives in Buying

Buying Habits of Consumers

Buying Habits of Consumers

Variety seeking Buying Behavior

Buying Habits of Consumers