Marketing plam a new business

Marketing Management

Prepared by sabujDepartment of Business Administration

Daffodil International University

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A Must Know…

1) What is Market?2) What is Marketing?3) What is Marketing Strategy?4) What is Marketing Mix?

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What Can Be Marketed..???

• Goods

• Services

• Experiences

• Ideas/Causes

• Information

• People

• Place

• Organization

• Properties

• Events

3

Demand States

• Negative Demand• No Demand• Latent Demand• Declining Demand• Irregular Demand• Full Demand• Overfull Demand• Unwholesome Demand

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Principles of Marketing: A Review

• Need, Want, Demand• Products, Services, Experiences• Customer Satisfaction• Value Proposition• Marketing Orientations

1. Production Concept2. Product Concept3. Selling Concept4. Marketing Concept5. Societal Marketing Concept

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Holistic Marketing Concept

• Integrated Marketing• Internal Marketing• Performance Marketing• Relationship Marketing– Customer Relationship Management (CRM)– Partner Relationship Management (PRM)

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Evolving Company Orientations

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• Customer Lifetime Value• Customer Equity• Customer Loyalty and Retention• Product-oriented Mission vs Market-oriented

Mission• Strategic Business Unit (SBU)• Stock Keeping Unit (SKU)

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Market-Oriented Business DefinitionCompany Product-Oriented Definition Market-Oriented Definition

Amazon.com We sell books, videos, toys, electronics and other products online.

We make the internet buying experience fast, easy and enjoyable----we’re the place where you can find and discover anything you want to buy online.

Google We provide the world’s best online search engine.

We help you organize the world’s information and make it universally accessible and useful.

Nike We sell athletic shoes and apparel. We bring inspiration and innovation to every athlete* in the world. (* If you have a body, you are an athlete)

Revlon We make cosmetics. We sell lifestyle and self-expression; success and status; memories, hopes and dreams.

Wal-Mart We run discounts stores. We deliver low prices everyday and give ordinary folks the chance to buy the same things as rich people. “Save Money, Live Better”

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Marketing’s Impact on Individual Consumers

High prices– High costs of distribution– High advertising & promotion costs– Excessive markups

Deceptive practicesHigh-pressure sellingShoddy, harmful or unsafe productsPlanned obsolescencePoor service to disadvantaged consumers

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Marketing’s Impact on Society as a Whole

False wants & too much materialismToo few social goodsCultural polution

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Value Chain Analysis

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BCG Matrix

• Boston Consulting Group (BCG)• Growth-Share Matrix

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Ansoff Model

• Product-Market Expansion Grid

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Growth Opportunities• Intensive Growth– Ansoff Model (Product Market Expansion Grid)

• Integrative Growth– Backward Integration– Forward Integration– Horizontal Integration

• Diversification Growth– Concentric Diversification– Horizontal Diversification– Conglomerate Diversification• Divesting and Downsizing

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Marketing Mix

• Controllable Marketing Tools

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Marketing Environment

• Internal Environment– Customers, Competitors, Investors, Employees,

Suppliers, Distributors, etc.

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Porter’s Generic Strategies

• Cost Leadership

• Differentiation

• Focus

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Strategic Alliances

• Product or Service Alliance

• Promotional Alliance

• Logistics Alliance

• Pricing Collaborations

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Marketing Environment

• External Environment

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Demographic Environment

• World Population Growth

• Population is Getting Older

• Economic Power of Women

• Formation of Household is Changing

• Ethnic Diversity Continues

• Concentration of Wealth

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Characteristics Affecting Consumer Behavior

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Types of Buying Decision Behavior

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Buying Decision Process

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New Product Development Process

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Test Marketing

• Standard Test Market

• Controlled Test Market

• Simulated Test Market

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Business Market vs Consumer Market

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Cross Sellingvs.

Up Sellingvs.

System (Solution) Selling

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Marketing Strategy

• Segmentation– Demographic Segmentation– Geographic Segmentation– Psychographic Segmentation– Behavioral Segmentation

• Targeting– Undifferentiated (Mass) Targeting– Differentiated Targeting– Niche Targeting– Micro Targeting (Local and Individual)

• Positioning– More for More– More for Less– More for Same– Same for Same– Same for Less 33

Customer Preference

• Homogeneous Preference = No Segments

• Diffused Preference = Few Segments

• Clustered Preference = Several Segments

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Market Targetingvs.

Target Marketing

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VALS Network

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Criteria for Effective Segmentation

• Measurable• Accessible• Substantial• Differentiable• Actionable

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Positioning Map

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Porter’s Five Forces of Competition

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Share of Marketvs

Share of Mindvs

Share of Heart42

Strategic Sweet Spot versus Competitors

Competitive Environment

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Competitor Classification

• Strong vs. Weak

• Close vs. Distant

• Good vs. Bad

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Competitor Levels

• Market Leader

• Market Challenger

• Market Follower

• Market Nicher

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Market Leader Strategies

• Position Defense (superior incomparable brand power)

• Flank Defense (protecting weak areas)

• Preemptive Defense (attacking before enemy does)

• Counteroffensive Defense (attacking the attacker)

• Mobile Defense (business expansion)

• Contraction Defense (leaving weaker territories)

46

Market Challenger Strategies

• Frontal Attack (copy-cat with leader)

• Flank Attack (attacking leader’s weak areas)

• Encirclement Attack (binding consumers to use)

• Bypass Attack (being in safe zone)

• Guerrilla Warfare (presence in every single area)47

Market Follower Strategies

• Counterfeiter (black market or piracy)

• Cloner (slight variation in brand elements)

• Imitator (copies leader with own strategy)

• Adapter (improves leader products, future challenger)

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Niche Specialist Roles• End-User Specialist• Vertical-level specialist• Customer-size specialist• Specific-Customer specialist• Geographic specialist• Product or product-line specialist• Product-feature specialist• Job-shop specialist• Quality-price specialist• Service specialist• Channel specialist

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Brand vs

Branding

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Brand Elements

• Brand Name• Logo• Symbol• Jingle• Color• Font• Character• Slogan• Motto• Tagline• Voice

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Brand Element Selection Criteria

• Memorable

• Likeable

• Protectible

• Meaningful

• Transferable

• Adaptable

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Brand Development Strategies

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Branding Decisions

• Individual Names

• Blanket Family Names

• Separate Family Names for all Products

• Corporate Names combined with Individual

Product Names

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Brand Portfolios

• Flankers

• Cash Cows

• Low-End Entry Level

• High-End Prestige

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Points-of-Parity (POP)vs

Points-of-Differences (POD)

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Point-of-Sale (POS)vs

Point-of-Purchase (POP) Display

[Impulse Buying]

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Brand Association

• Primary Association

– Quality

– Price

– Attribute

– Feature

• Secondary Association61

Secondary Brand Associations

62

Product Classification

• Nature basis

– Goods

– Services

– Experiences

• Durability basis

– Durable Products

– Non-Durable Products

• User basis

– Consumer Products

– Business Products

• Purchase Behavior basis

– Convenience Products

– Shopping Products

– Specialty Products

– Unsought Products 63

Product Levels

65

Product Hierarchy• Need Family

• Product Category

• Product Class

• Product Type

• Brand

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Product Differentiation

• Form• Size• Shape• Flavor• Feature• Customization• Design

• Performance Quality• Conformance Quality• Durability• Reliability• Repairability• Style

67

Attributesvs

Features

68

Product Linevs

Product Mix

69

Product Life Cycle

• Fad

• Fashion

• Style

• Trend

• Mega trend

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PLC and Marketing Strategies

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Packaging Levels

• Primary

• Secondary

• Tertiary

• Boundary

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Packaging as Marketing Tool

• Self-Service

• Consumer Affluence

• Company and Brand Image

• Innovation Opportunity

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Labeling Components

---------

---------

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Customizationvs

Customerization

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One to One Marketingvs

Permission Marketingvs

Experiential Marketing

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Sets in Consumer Decision Making

• Total Set• Awareness Set• Evoked Set• Consideration Set• Inept Set• Inert Set• Choice Set• Decision

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Consumer Perceived Risk

• Functional Risk

• Physical Risk

• Financial Risk

• Social Risk

• Psychological Risk

• Time Risk

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Service Characteristics

• Intangibility

• Perishability

• Simultaneity

• Variability

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Categories of Service Mix

• Pure Tangible Goods

• Tangible Goods with accompanying Services

• Hybrid

• Major Service with accompanying Goods

• Pure Services

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Service Marketing Triangle

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Service Marketing Mix

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Service Differentiation

• Ordering Ease• Delivery• Installation• Customer Training• Customer Consulting• Maintenance and Repair• Returns• Warranty and Guarantee

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Service-Quality Model

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Service Quality Dimensions

• Reliability• Responsiveness• Assurance• Empathy• tangibles

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Pricevs

Pricing

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Changing Pricing Environment

• Buyers can – – Price comparison– Quote own price– Free products

• Sellers can – – Tailor price offer with consumer behavior– Special price of specific customer

• Both can – – Negotiate price online and auction

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Reference Pricing

• Fair Price• Typical Price• Last Price Paid• Upper-bound price• Lower-bound price• Competitor price• Expected future price• Usual discounted price

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Steps of Price Setting• Selecting Pricing Objective

– Survival, growth, share, profit, leadership, etc.

• Determining Demand

– Sensitivity, elasticity, etc.

• Estimating Costs

– VC, FC, AC, MC, TC, etc.

• Analyzing Competitors Cost, Price, and Offers

• Selecting Pricing Method

• Selecting the Final Price

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Pricing Strategy

• Skimming Strategy

• Premium Pricing

• Penetration Strategy

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Pricing Types

• Cost based pricing

• Value based pricing

• Perceived value pricing

• Break even pricing

• Promotional pricing

• Psychological pricing

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Pricing Options

• Captive Product Pricing

• By-Product Pricing

• Optional Product Pricing

• Bundle Product Pricing

• Product Line Pricing93

Additional Pricing Considerations

• Auction type pricing

• Geographical Pricing

• High-Low pricing

• Time based pricing

• Two-Part Pricing

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Promotional Pricing

• Loss-Leader pricing• Special-event pricing• Cash rebates• Low-interest financing• Longer payment terms• Warranties and service contracts• Psychological discounting

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Differentiated Pricing

• Customer-segment pricing• Product-form pricing• Image pricing• Channel pricing• Location pricing• Time pricing

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Price-Adjustment StrategiesStrategy

Discount and allowance pricing

Reducing prices to reward customer responses such as paying early or promoting the product.

Segmented pricing Adjusting prices to allow for differences in customers, products or locations.

Psychological pricing Setting prices for psychological effect.

Promotional pricing Temporarily pricing products below the list price to increase short-run sales.

Geographical pricing Setting price for customers located in different parts of the country or world.

Dynamic pricing Adjusting prices continually to meet the characteristics and needs of individual customers situations.

International pricing Setting the prices for international markets.97

Initiating Price Cut

• Low Quality Trap

• Fragile Market Share Trap

• Shallow Packet Trap

• Price War Trap

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Initiating Price Increase

• Delayed Quotation Pricing

• Escalator Clauses

• Unbundling

• Reduction of Discounts

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Consumer Marketing Channels

101

Industrial Marketing Channels

102

Push Strategy vs

Pull Strategy

103

Channel Integrations and Systems

• Conventional Marketing System

• Vertical Marketing System (VMS)

– Corporate VMS

– Administered VMS

– Contractual VMS

• Horizontal Marketing System (HMS)

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Distribution Types

• Intensive Distribution

• Selective Distribution

• Exclusive Distribution

105

Channel Conflicts and Resolution

• -• -• -• -• -• -• -• -

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Brick-and-Mortarvs

Click-and-Mortar

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Faculty of Business Studies

University of Dhaka

IMCIntegrated Marketing Communications

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FocusUSP

Consumer BehaviorMedia Behavior

IMC Budget

Target Market

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ATLAbove the Line

BTLBelow the Line

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The LINE

111

Slot Buying113

Philosophy 1: Single MessagePhilosophy 2: Every Medium

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IMC Budget

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IMC Tools 117

ADVERTISEMENTSBroadcast Media

Print Media

Out-of-Home Media

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Thinking about TVCs???

Celebrity or Expert or MascotStereotyped Cases

Rational or Emotional or Morale Appeal

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The Five Ms of Advertising

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Then WHAT about….

RDCs

Billboards

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Consumer Promotion

Trade Promotion

Philosophy 1: Single Message Philosophy 2: Every Medium

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Major Consumer Promotion Tools• Samples• Coupons• Cash Refund Offers (rebates)• Price Packs (cents-off deals)• Premiums (gifts)• Prizes (contests, sweepstakes, games)• Patronage Awards• Free Trials• Product Warranties• Tie-in Promotions• Cross- Promotions• Point-of-Purchase

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Is it really NecessaryWho to send..

Door-to-Door Selling..!!!


Sales PresentationCanned Presentation

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EnvironmentPeople

Any other way…???Community


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Forms of Direct Marketing

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Global Product and Communications Strategies

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Format of MARKETING PLAN

• Executive Summary• Situation Analysis

– Internal Environment– External Environment– Competitive Environment

• Market Environment• Marketing Strategy• Marketing Mix• Budget• Return on Investment (ROI)• Contingency Plan• Takeaway

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