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Production concept
Product concept
Selling concept
Marketing concept
Societal marketing concept
STP
SEGMENTATION(206)
Segmentation Base
Geographic
Region
City Size
Climate
Psychographic
Lifestyle
Personality
Variables
North South, East, West
Major Metros, Sub Metros, Town
Hot, cold, humid
SEGMENTATION
C) Demographic
Age
Sex
Family Size
Education
Occupation
Income
Religion
0-11,12-19,20-34 etc.
Male, Female
1-2,3-4,5+
school, Graduate, PG
Farmer, Professional,
Housewife, Retired
<15k,16-25k,26-35k etc.
Hindu, Muslim, Sikhs,
Christians
SEGMENTATION
D) Behavioral
Benefit
Use Related
1) Usage Rate:
2) Awareness Status
3) Brand Loyalty
Use-Situational
Time/Objective
P2
P2M1
P3
M1
M2
M3
P2
P2M1
P2M3
P3M2
P3
M1
M2
M3
P1M1
P2
P2M1
P3
P3M1
M1
M2
M3
P2
P2M1
P2M2
P2M3
P3
M1
M2
M3
P2
P3
M1
M2
M3
Positioning
Positioning starts with the product. But Positioning is not
what you do to a product. Positioning is what you do to the
mind of the prospect.
Easiest way to get into the mind - Be First
KODAK- Photography
Xerox -- Copier
Hertz --- Rent-a car
Positioning
PRODUCT ()
Defn: A product is anything that can be offered to a market for
attention, acquisition, use or consumption that might satisfy a want or
need.
e.g. :- Physical Goods :-- Cars, W/M
Services
:- Training
Persons
:- Michael Jackson
Ideas
: - Family Planning
Product classification - 310
Five Levels of Product - --- 308
Level 1 : Core Benefit : Fundamental benefit that the
customer is buying . E.g. :- Hotel :-Rest,
CTV :- Entertainment
Product
Level 2:- Generic Benefit : Basic version of the product.
e.g. : Hotel : consists of a building with rooms.
W/M : Metal/plastic body with console
panel
Level 3 : Expected Product : A set of attributes and
conditions that buyers normally expect and agree when
they purchase the product.
e.g. : Hotel : Clean Bed, soap, towels,
telephone
CTV : Tuning on remote, cable ready.
Product
Level 4 : Augmented Product : includes additional services and
benefits that distinguishes the companys offer from
competitors offers.
e.g. : Hotel : Complimentary breakfast, Flat CTV,
24 Hrs checkout, etc.
Level 5: Potential Product: All augmentations and
transformations that the product might ultimately undergo in
the future.
e.g. : Computer compatible TV (which can operate at room
temperatures)
Eight Stages
1) Idea Generation :
Source of New Product Ideas:Customers , Employees, Competitors Products and services ,
sales team
Idea Generating Techniques :
Brain Storming , Need/Problem Identification , Problem /Need
Identification
2) Idea Screening:
Drop Error
Go Error
5) Business Analysis:
Actual costs to R&D, MFG. ,Marketing cost and Profit Projection
6) Product Development:
1) Develop Prototype
2) Functional & Consumer Tests
7) Market Testing :
Testing in select outlets with actual brand name and
packaging
8) Commercialization :
When to enter the market
How to enter the market
Product Strategies(325)
1) Downward Stretch
2) Upward Stretch
3) Two-way Stretch
BRANDING (251,259,271)
Products dont sell , Brands sell
The ultimate aim of product manager must be to
convert the product into a successful brand.
Japanese Name :
BRANDING
BRANDING
BPL
: Believe in the best.
Videocon : Bring home the leader
Technology for health and Pleasure.
Sansui
:Better then the best
Born in Japan . Entertaining the world.
LG
:Digitally yours.
Nokia
:Connecting people
Motorola : Intelligence everywhere.
Ceat Tyres : Born Tough.
Femina
: For the woman of substance.
For generation W.
BRANDING
BRANDING
Defn:- A name ,symbol, design which is intended to
identify the goods ,services of one company and to
differentiate the goods from those of competitors.
BRAND NAME DECISION
PRICING Srategies
Differential Pricing : Same brand is sold at different
prices/different times to consumers.
Competitive Pricing : Prices are set to exploit competitive
position.
Product Line Pricing : Related brands are sold at prices
that
exploit mutual dependencies.
Promotional pricing :
Pricing
DIFFERENTIAL PRICING(392) :
1) Periodic Discounting : - Skimming Strategy
Cater to early adopters ----after that the price reduced to cater
to the next group of buyers.
e.g. : BPL MOBILE/ORANGE.
2) Second Market Discounting : Dumping --Firms selling
Price in foreign market is below its average cost in home
country. (e.g. dumping by china)
Pricing
B) COMPETITIVE PRICING :
Pricing
Two Part Pricing : Service Industry :Fixed + variable usage fee (MTNL)
Entry fee + every ride /game/place
separate pricing :-- SENTOSA ISLAND (SINGAPORE)
Pricing
Product Line Pricing
3) Product Bundling : Season pass cheaper then daily tickets
Car + accessories , the price is lesser then
if each item is bought separately.
4) Image Pricing : Firms bring out an identical version of its
current product with a different
name/packaging and a
higher price. The
intention is to signal quality.
Advertising
Sales Promotion
Personal Selling
PR and publicity
Direct marketing
Promotion
Advertising : is any paid form of non personal presentation and promotion
of ideas goods, services by an identified sponsor
Direct Marketing : Use of mail, telephone and other non personal contact
tools to communicate with or solicit a response from specific customers and
prospects.
Sales Promotion : Short term incentives to encourage trial or purchase of a
product/service
PR : A variety of programs designed to promote and protect a companys
image or its individual products.
Personal selling : Face to face interaction with one or more prospective
purchasers for the purpose of making sales.
Sales Promotion
Consumer Promotion Tools:
Samples : Free samples with TOI , Mid-day, Filmfare.
Coupons: FMCG companies: 15% discount coupon or some
rupees off for the next purchase.
Price Packs: Pack of 2 or more at reduced price.
Banded Pack : Two related products banded together
(toothpaste with toothbrush, VCD player with software.)
Contests : Answer a few questions, write a slogan.
Free Trials: Free auto drives.
Warranties: 3 yr on CTV, 7 yrs on compressor.
Sales Promotion
Distribution
Retailing : Consists of the activities involved in selling
goods and services to ultimate consumers. A retail sale is
one in which the buyer is an ultimate consumer and the
buying motive for a retail sale is always personal or family
satisfaction derived from the final consumption of item
being purchased.
Wholesalers: Wholesaling is concerned with the activities
of those persons or establishments which sell to retailers
and other merchants , and/or to industrial , institutional and
commercial users , but who dont sell in significant amount
to ultimate consumers.
Distribution Strategies
EXCLUSIVE DISTRIBUTION : Distributing through
company outlets or franchisee e.g. : HONDA
Showrooms:- only company products are available.
INTENSIVE DISTRIBUTION : Placing the products in
as many outlets as possible.
Products : Soaps, cigarettes, soft drinks , BPL MOTS etc.
( each outlet has various brands
Distribution Strategies
SELECTIVE DISTRIBUTION :
Here companies select a combination of Exclusive
distribution (only companys products) & Intensive
Distribution (some important outlets which are multibrand
outlets)
e.g. SAMSUNG , VIDEOCON
marketing
activities
culture
family
reference
groups
subculture
social
status
demographi
cs
Motives
Emotions
Learning
Personality
Perception
Problem Recognition
Information Search
Alternative Evaluation & Selection
Store Choice
Post Purchase Behaviour/Processes