Marketing Management – CBS pgmpi - class 4

8/2/2019 Marketing Management CBS pgmpi - class 4

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Marketing Management

31/10/2011

IGTC Class 5&6Sivapriya Krishnan


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Branding Challenges

Branding Decisions-Brand SponsorBrand Name Decision -Brand StrategyBrand Reposition Decision


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Branding

Three commonly used researchapproaches to get at a brand meaning:

1.Word Association

2.Personification3.Brand Essence through laddering


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BrandingBuilding brand identity and thereby

developing a brand bonding with theconsumers is very important

Name, logo, colours, tagline,

symbols. There must be a vision and mission

for every brand

Brand contract must be honest

Bonding develops not throughadvertising but by the brand

experience


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Brand Equity

Brand Equity is the positive differentialeffect that knowing a brand name hason consumers

When the brands are identical,consumer preference for one over theother signifies the brand equity

The extent to which consumers will paya premium for the particular brand is ameasure of brand equity


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Brand Equity

Brand Equity provides a number ofcompetitive advantages :

Trade leverage distributors and

retailers Command higher price

Launch extensions as base credibility is

high Defence against price competition


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Packaging & Labelling

Packaging is all the aspects ofdesigning and producing the containerfor a product

Packaging is both an art and a science

Packaging should fulfill all needs in

respect to social and legalrequirements


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Factors influencing the growth ofpackaging:

Need for self service : convenience ,handling and attractiveness

Consumer affluence

Company and brand image

Innovation opportunity


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Labelling :

A label is a simple tag which

designates a package.


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Product / Brand Image

In marketing terms, products find space in the consumer

minds according to his/ her

perceptions Perceptions are subjective,

Governed by individual values,

Beliefs, experiences, environment


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Consumers Mind

Dets

Soaps

Cosmetics

TVMobiles Food Brand A

B, C etc

Innumerable products and brands jostling for the consumers mind space


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Product Positioning

Slotting the product in the consumersmind

Output : Successful creation of acustomer focussed value Proposition ,a cogent reason as to why the target

market should buy the product.


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Product Positioning

Acc. To Kotler, arranging for a product to occupy a

clear, distinctive, desirable place in the

market and in the minds of the targetconsumers.


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Product Positioning

What is positioning ?

It is not what you do to a product, but

what you do to the mind of theconsumers


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Product Positioning

Differentiation :

Process of adding a set of meaningfuland valued differences to distinguish

the companys offerings fromcompetitors offerings


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Product Positioning

Positioning encompasses the following

Position as a place

Position as a rank

Position as a mental attitude


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Product Positioning

What is perceptual mapping? Draw a map of the overall category

benefits

Represent the consumer perceptionsin a two / multi dimensional space tosee where our brand is positioned as

against others


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Perceptual map - soaps

COSMETIC

HEALTH

LUXURY

UTILITY

Liril

Nirma Bath

Lux

Mysore Sandal

Dove

Camay

Hamam

Margo

Lifebuoy

Cinthol

Neko


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Product Positioning

Positioning methods : Product feature positioning

Benefit positioning

Specific usage positioning User category positioning

Position against other products

Positioning by usage

By product class


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Product Positioning

Positioning is easy for the first mover

The human mind cannot rank morethan seven items at a time

Once your mind is set, difficult to reset


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Product Positioning

1. Important the difference delivers a highlyvalued benefit to a sufficient number of buyers

2. Distinctive The difference is delivered in adistinctive way

3. Superior the difference is superior to other

ways of obtaining the benefit4. Preemptive the difference cannot be easily

copied by others

5. Affordable - the buyer should afford to pay for

the difference6. Profitable it should be profitable to introduce

the difference


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Product Positioning

Positioning Errors :

Under positioning

Over positioning

Confused positioning

Doubtful positioning


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Pricing

Price

A value attached for the services

and the inherent worth of a productor service.

Not just a number tag on an item


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Pricing

Price produces revenue other Ps

produce costs

Price is by easier to adjustcompared to other Ps

Price conveys a certain intendedvalue proposition to he consumers


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Selecting the price

Companies select five majorobjectives :

Survival

Maximise current profit

Maximise market share

Maximum market skimming

Product quality leadership


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Determining the demand

Price sensitivities

Analyse past prices sales and other

estimates Price experiments

In all of the above the competitive

reaction to pricing will have to bebuilt in.


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Estimating Costs

Fixed , variable and total costsstructures.

Costs of RM / PM and otheroverheads

Japanese method of Target

Costing

Determine the final product appeal andthen cost each element


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Select the pricing method

Mark up pricing

Target return pricing

Perceived value pricing Value Pricing

Going rate pricing

Auction type pricing Group pricing


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Mark up pricing

Add up a standard mark up to theproducts cost

E.g. construction companies, legaland accounting firms use this method

This method does not take into

account market realities Works only if the price fetches

expected sales


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Mark up pricing

Most popular

1) estimating costs is easier thanestimating demand

2) prices tend to be similar, price

war is reduced 3)fair to both buyers and sellers


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Target return pricing

Pricing is done according totargetted rate of return on

investment (roi) Public utilities use this method for

determining returns

Companies strive to lowerfixed/variable costs, to break evenfaster


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Perceived value pricing

Pricing done on what the consumersperceive as value of the product

Value is given for :Brand image

Performance

Customer support

Supplier reputationEsteem


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Perceived value pricing

There are three different buyers :

Price buyers : stripped down price andreduced services

Value buyers : innovate and re affirmvalue

Loyal buyers : constantly buildrelationship


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Value pricing

Charging low prices for a fairly highvalue item

In retail, Everyday Low Pricing(EDLP) is observed

The other is : High Low Pricingcharge high but run frequentpromotions


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Going rate pricing

Price based on competition in themarket

No demand and cost parametersare considered


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Auction type pricing

Based on the highest bidder

Disposes higher inventories Used for high value items


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Group pricing

Consumers group together for abetter price

E.g. co-operatives, mandis


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Select the final price

In selecting the final price thecompany include factors like

Psychological pricing

Gain and risk sharing pricing

Influence of other marketing mixelements

Company pricing policy


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Adapting Pricing

Geographical segmentation

Price discounts and allowances

Promotional Pricing

Discriminatory pricing

Product mix pricing


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Initiating and responding to pricechanges

Initiating price cuts

Initiating price increases

Responding to competition


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Nine Price Strategies

PremiumStrategy

High valuestrategy

Super valuestrategy

Overcharging strategy

Mediumvalue

strategy

Good valuestrategy

Rip OffStrategy

FalseEconomyStrategy

EconomyStrategy

Pr

o

d

u

ct

Q

u

al

i

t

y

Price

H M L

H

M

L


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Marketing Segmentation

- Market Groups affected by the productfor a specific function with a certaincompetition

- (refer to fig 1. pg. 26 of the block 2, unit 1)

- Segmentation is the basis of breaking up

these subgroups for a marketing mix


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Segmentation

Market segments are :

sub classes of the market groupedtogether on the basis of similarity of wants,behaviour and income parameters

Can be called a group of people who seekby far the same aspects of the product

In reality , it is a marketers definition and

concept of the market


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Segmentation

Relationship of a segment to a market

Differences of the segment based ondemands

Mobility of buyers across similar segments


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Segmentation

Segmentation vs product differentiation Product differentiation products

designed according to appeales of a givensegment

Differentiation is complete if there aredifferences in the following : Physical aspects

Services offered Convenience

image


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Segmentation

Benefits of segmentation:

Clarity about the consumers

Exploit market better

Better match of product to consumer needs

Better loyalty


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Segmentation

Doubts : Not mutually groups not water tight

compartments

Commercial viability of small segments

Competitive practices of rivals

Insignificant differences exist between brands


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Segmentation

Doubts : Not mutually groups not water tight

compartments

Commercial viability of small segments

Competitive practices of rivals

Insignificant differences exist between brands


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Marketing Research

- The systematic gathering , recording andanalysing of data about problems related

to the marketing of goods and servicesThe American Marketing Associationdefinition


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Marketing Research

- Purpose of research :

- Decision making tool

- facilitation

- Risk reduction

- Discovering profitable opportunities


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Marketing Research - Scope

- Study of consumer behaviour

- Product design

- Designing distribution channels- Advertising design through consumer

perception

- Social marketing


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Marketing Research

- Steps in marketing research

- Problem definition

- Research design- Field work

- Data Analysis

- Report presentation


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Marketing Research

- Steps in marketing research

- Problem definition define the issue on

hand- Give a correct overview of current

scenario and future objective


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Marketing Research

- Steps in marketing researchResearch Design

- Data collection- Research instrument

- Sampling plan


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Marketing Research

- Steps in marketing researchField work

- Planning and supervision


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Marketing Research

- Steps in marketing researchData Analysis

- Classifying raw data- Summarising data

- Analytical methods to analyse and then

make an inference


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Marketing Research

- Application of research

- Sales and market analysis

- Product research- Corporate research

- Advertising research

Marketing Management – CBS pgmpi - class 4

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