Prepared by-Prepared by-Sheik Mohammed Sheik Mohammed

NowheedNowheedIInd Sem MBAIInd Sem MBASIT MangaloreSIT Mangalore

Marketing ConceptsMarketing ConceptsMarketing is the process of planning

and executing the conception, pricing, promotion, and distribution of idea, goods, and service to create exchanges that satisfy individual and organizational objective

Marketing Mix is the combination of products, price, promotion, and distribution (place)used to satisfy the needs of the target market

ProductVarietyQualityDesignFeaturesBrand NamePackagingServices

ProductVarietyQualityDesignFeaturesBrand NamePackagingServices

Price

List priceDiscountsAllowancesCredit Terms

Price

List priceDiscountsAllowancesCredit Terms

Promotion

AdvertisingPersonal SellingSales PromotionPublic Relations

Promotion

AdvertisingPersonal SellingSales PromotionPublic Relations

PlaceChannelsCoverageAssortmentsLocationsInventoryTransportationLogistics

PlaceChannelsCoverageAssortmentsLocationsInventoryTransportationLogistics

Target Costumers

IntendedPositioning

Target Costumers

IntendedPositioning

Marketing Mix Variables

Marketing ActivitiesMarketing Activities

Product:Develop new

productsModify existing

productsTest-market

productsSelect brand

namePackage product

Pricing:Establish price

objectivesConduct cost

analysisAnalyze

competitor’s price

Set actual prices

Marketing ActivitiesMarketing Activities

Promotion:Determine types

of promotionDesign the

advertising massage

Selecting advertising media

Schedule the advertisements

Distribution:Select wholesalers

and retailersEstablish

procedures for handling and moving products

Find the best locations for plants, warehouses and retail outlets

MarketMarket

Market is people with the authority, financial ability, and willingness to purchase a product

Types of Market:Consumer market - for personal

useIndustrial market - to use in the

production or resell

Target MarketingTarget MarketingTarget market - a group of

people that has similar wants and needs which a firm directs its marketing activities

Market SegmentationMarket SegmentationMarket segment – division of

heterogeneous market into homogeneous market based on different characteristics

Segmentation Based:Geographic bases - city, regionDemographic bases - sex, race, maritalPsychographic - a person’s attitude,

lifestyleBehaviour - brand loyalty, occasions

PRODUCTPRODUCT

PRODUCTPRODUCT Product - a good, service or idea,

including all attributes provided in an exchange between buyer and seller

Product Classification:Consumer goods – products

purchased by consumers for personal use

Industrial goods – product purchased by companies to produce other products

Brand - a name, sign, symbol, design, or combination a company’s product to distinguish it product from others

Packaging - the development of a container and graphic design for a product

 Labeling - the display of important information on a product package

PRICINGPRICING

PRICINGPRICINGPrice - the value that buyer

exchange for a product in the marketing transaction

Pricing Objective:◦Market share◦Profit◦Return on Investment◦Maintain price leadership◦Improving Cash Flow

Pricing Decision and Pricing Decision and MethodsMethodsFactors in Pricing Decisions:

◦Demand◦Consumer perception of price◦Cost of product◦Competition

Pricing Pricing Methods/StrategiesMethods/Strategies

Pioneer pricing – leadership pricing in the market

Price skimming – setting an initial high price to cover new product cost and generate a profit

Cost Pricing- based on cost

Demand pricing- based on market demand

Penetration pricing – setting an initial low price to establish a new product in the market

Psychological Pricing – setting an price like 399,449 etc…

Price Discounting – Price reduction offered as an incentive to purchase

Competiton pricing

Value pricing

PROMOTION MIXPROMOTION MIX

The Promotion MixThe Promotion Mix

Promotion Mix - the combination of advertising, personal selling, sales promotion, publicity used to promote a specific product

Promotional Objectives:Promotional Objectives:

Informing about productIncreasing salesStabilizing salesPositioning the productBuilding a public image

Components of Promotion Components of Promotion mixmixAdvertisingSales promotionPersonal selling

AdvertisingAdvertisingNon-personal communication to a

target audience through a mass medium, such as TV, Radio, newspapers, or magazines, and outdoor display

Types of Advertising:◦ Primary-Demand Advertising: for all

products◦ Selective Brand Advertising: for specific

products

Advertising PromotionAdvertising PromotionAdvertising Media – variety of

communication devices for carrying message to potential customers

Direct Mail – delivery message directly to customer places

Internet Advertising – put the message into website or mailed directly to customer email

Personal SellingPersonal SellingPerson-to-person communication with

one or more prospective customers in order to make sale

Telemarketing – using telephone to perform the personal selling process

Sales PromotionSales PromotionAn activity that offers customers or

marketing intermediaries direct incentives for purchasing a product

 Type of Sales Promotion:◦ Coupon: reduces the price of a product by

stated amount at the time of purchase◦ Rebate: an extra discount◦ Free Sample◦ Contest: consumer compete for prizes◦ Trade show

Promotional Strategy:Promotional Strategy:Push Strategy: promotion of a

product to wholesaler or retailers in the marketing channel, who in turn promote the product to consumers

Pull Strategy: promotion of a product direct to consumers to stimulate strong consumer demands

PLACEPLACE

Place stands for physical distribution activities through which the product moves from factory to the customer

WholesalingWholesalingThe marketing activities of intermediates who

sell to retailer, industrial users for resale or business use.

Types of Wholesalers:Merchant Wholesaler: takes ownership of

goods and the risks associated with ownershipSales Branch: a manufacture-owned

wholesaler that take title to products, risks, and provides service

Agent: a wholesaler hired by a buyer or seller on a permanent basis and paid commissions

RetailingRetailingThe marketing activities involved in

selling products to final consumers for personal or household use

Department Store: a large retailer organized into separate departments and offering a full line of services and wide product mix

Supermarket: a large self-service retailer that stock a wide variety of groceries and a limited assortment of nonfood products

Physical DistributionPhysical DistributionThose activities that involve the

movement of products through marketing channels from manufacturer to customer, including:

Transportation: shipping goods to customers by rail, air, truck, water, and pipeline

Warehousing: the receiving, storing, and shipping activities involved in the physical distribution of goods

Order Processing: the receipt and preparation of an order for shipment

Material Handling: the physical handling of products during transportation and warehousing

Basic Channels of DistributionBasic Channels of Distribution

Manufacturers/products

Agents/brokers

Wholesalers/distributors

RetailersRetailers

Consumers and organizational end users

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