MarketingManagement__2013_10_18_09_58_07.pdf

7/27/2019 MarketingManagement__2013_10_18_09_58_07.pdf

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B.E. SEMESTER: VMarketing Management

(Inst. Elective II)

Prof. Siraj Bloch | Faculty Of Management, MEFGI

[email protected] | 8128668957


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* * * * * * = 3 Subjects


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What is Marketing ??

According to American Marketing Association

Science and art ofexploring, creating

and delivering value to satisfy the

needs of a target market at a profit.

Need Want & Desire - Marketing Research | Product Development| Product + Value | Consumer Behaviour & Loyalty


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Existence Of Marketing

BarterSystem / Exchange Concept (till 1950)

Production Concept(till 1970s)

(till 1980s)Product ConceptSelling Concept(till 1990s)

Marketing Concept

Holistic Marketing Concept


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Marketing Vs. Sales

POP Vs. POD

Brand Vs. Product

Branding

Role ofMarketing Manager

Efforts Vs. Results


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Age: 5 - 15

School Kids

Dont like brushing

Forced to brush twice a day

Need: Strong & Healthy teeth

Age: 18 - 24

College goers

Using mouth fresheners

Conscious about Bad-mouth order

Need: Fresh breath & White teeth

STP in Real Life


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STP in Real Life



Classical STP

Segmentation

Grouping of people having similar needs.



Classical Segmentation

Geographic:Region & Climate, Density & Size, Town/Metro

Demographic:Age, Gender, Life Cycle, Occupation, Income

Psychographic:

Lifestyle & Personality

Behavioural:Occasions, Uses & Benefits, Attitudes



Process Of Segmentation

Need Base Segmentation

Homogenous within segment & Heterogeneous from other segments

e.g. Bike Category



Classical STP

Targeting

Choosing one of those segments.



TargetingOn the basis of.

CompetitionMargin & Penetration

YourCompetencyStrength & Background

PLC StageGrowth Potential & Profitability



Harley Davidson 1%ers

1970

1%ers

HELLS ANGELS - 2007

Targeting



Exercise - 1

Soap Category

Car Category

Shoe Category

Shampoo Category

Mobile Phone Category

Apparels Category



Classical STP

Positioning

What your TG think about you.

A space in the minds of the consumers.

Desire Vs. Actual



How to do it PositioningBy Product Attribute:

Size, # years in business, largest

By Benefits:Leader in certain benefits, fastest pain relief / whiter than white

By Usage Occasion:Orange juice in breakfast, Chocolate In sweet

By Users:Best for some user group, J&J

Vs. Competitors:Better than competition, Coke & Pepsi, 7up Uncola



Positioning In Practice

Strengthen own position -> By Claims:Now 25% bigger, 30% whiter

Reposition yourselfaccording to some unmet needs:

Lifebuoy rough use to family soap

Savlon Dettol was irritating & burning

Deposition competition:All Political parties

coke Pepsi is sweet

Pepsi Nothing official about it



Identify Positioning



Complete the Exercise - 1

S T P .



Marketing Mix

4Ps = Marketing Mix

Product (Solution) New Product Development

Price (Cost, Price, Value) Positioning

Place (Availability) Distribution

Promotion (Brand Vs. Sales) Push Vs. Pull

Apple | Merq | Lorial & Dell | HUL Vs. P&G



Consumer Behavior

I. Pre-purchase High Involvement

II. Purchase (Impulse Purchase) Low Involvement

III. Post-purchase (Experience)



ProblemRecognition

InformationSearch

Evaluation Decision BUY

Repeat

Reject

Consumer Behavior Process



Marketing Research

According to American Marketing Association

Process that links customer, consumer and trade to

marketers through information which can identify the

opportunity or solve the problem.

According to Cooper and Schindler

Systematic enquiry that provides information

to guide managerial decisions.



Why Marketing Research??

Decision Making on the basis of:

A. Management Information System

B. Business Intelligence System

C. Marketing Research


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Marketing Research

Research Approach:

A. Qualitative

B. Quantitative

Types of Research:

1) Exploratory Research

2) Descriptive Research

3) Causal Research


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Marketing Research

Sources of Data Collection (Types of Data):A. Primary Data

B. Secondary Data

Sampling Methods:

A. Probability (Random/Stratified Random)

B. Non-probability (Convenient / Quota / Judgmental)

Why Sampling?

Sample Size


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Marketing Research Process

1) Problem or opportunity identification

2) Meeting ofDecision Makerand Market Researcher

3) Converting management problem to research problem

4) Formal research proposal

5) Approaches to research (Research Designing)

6) Field work and data collection

7) Data preparation and data entry

8) Performing data analysis

9) Interpretation of result and presentation of findings

10) Management decision and its implementation


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Time

ProductDevelopment Introduction

Profits

Sales

Growth Maturity Decline

1 2 3 4 5

Product Life Cycle


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IdeaGeneration

IdeaScreening

ConceptDevelopmentand Testing

MarketingStrategy

BusinessAnalysis

ProductDevelopment

TestMarketing

Commercialization

New Product Development Process

New Product Development Process


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Price is the economic value of the product (good & services)

normally expressed in terms of money.

Price is an agreement between sellers and buyers at whichgoods and services are exchanged for money.

Price is the specific value at which the product is exchanged.

Thus, it is an exchange value of product expressed in

monetary form.

Pricing


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Consumers point of view:

Price is a means for getting the product.

Consumer pay for expectations

Price is perceived value: Physical product + Other Benefits

(after sales services, guarantee, warrantee, prestige, brand

image, credit facility, installation, education)

According to them, the price is equal to all types of

satisfactions or benefits derived from the product.

Different views on Price


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Marketers point of view:

Value of total offerings

Cost ofPhysical Product + Promotion + Services + Distribution

Different views on Price


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Cost-plus Pricing:

Set the price at yourproduction cost, including both cost of goods

and fixed costs at your current volume, plus a certain profit margin.

Target Return Pricing:Set your price to achieve a target return-on-investment (ROI).

Fair Pricing:Sometimes it simply doesn't matter what the value of the product is,

even if you don't have any direct competition. There is simply a limit

to what consumers perceive as "fair".

Pricing Approaches

P i i A h


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Value-based Pricing:

Based on the value it creates for the customer

This is usually the most profitable form of pricing, if you can

achieve it. (As per the Brands Equity)

The most extreme variation on this is, "pay for performance"

pricing for services, in which you charge on a variable scale

according to the results you achieve.

Pricing Approaches

P i i A h


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Psychological Pricing

Ultimately, you must take into consideration the consumer's perception

of your price, figuring things like:

Positioning:

"low-cost leader priced lower than competitionHigh on price = High on quality

Popular price points: There are certain "price points" (specific prices)

at which people become much more willing to buy a certain type of

product.

Rs. 99 Rs. 199 Rs. 299 etc

Shop $99 and Rs. 149 Rs. 179

Pricing Approaches

P i i A h


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Creaming or skimming (Early Buyers Electronic Gadgets)

Loss leader (Reliance Handset Telecom Services)

Penetration pricing (Gaining Market Share initially)

Discrimination Pricing (Time, Day, Age, Loyalty Cards)

Premium pricing (Artificially high positioning)

Dynamic pricing (Online portal Air ticket)

High-low pricing (Starting at .)

Freemium Pricing (Trial Activation)

Pricing Approaches

F t ff ti P i i D i i


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1) Targeted Segment

2) PLC Stage

3) Economic Trend

4) Product Development Cost

5) Perceived value of product

6) The level of competition

Factors affecting Pricing Decisions

P d t Mi


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Product Line: Group ofClosely Related Products

1. Soap, Shower Gel, hand wash liquid, Face wash

2. Shampoo, Conditioner, Hair Oil, Syrum

3. Talcum powder, Fairness Cream, Sun-scream, Anti-aging Cream

Product Mix: Set of all Product Lines (1, 2 and 3)

Product Width = 3

Product Length = 4 x 3 = 12

Product Depth = 2 size x 3 Flavors = 6

Product Consistency = Similarity between Product Lines

(Personal Care, Toilet Products, Hygiene Products)

Product Mix


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D fi iti f Ad ti i


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Advertising is paid form ofnon personalcommunication about an organization, product,

service oridea by an identified sponsor.

Public Service Announcement (PSA)

Non-personal = TV, radio, magazines, newspapers

Definition of Advertising

Cl ifi ti f Ad ti i


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Advertising to Consumer

(1) National

(2) Local

(3) Product Vs. Category Development

Advertising to Business & Professional

(1) Business to Business

(2) Professional

(3) Trade

Above The Line Vs. Below The Line (ATL Vs. BTL)

Classification of Advertising

Advertising Medium


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1) TV

2) Radio

3) Print (Magazine & News Paper)

4) Outdoor

5) Internet / Social Networking

6) Visual Merchandising

Advantages Vs. Disadvantages

Advertising Medium

Advertising Budget


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Percentage of Sales method

Objective and Task method

Competitive Parity method

Market Share method

Affordable method

Advertising Budget

Measuring Advt Effectiveness


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1) Why to Measure?

2) When to Measure?

3) Where to Measure?

4) What to Measure?

5) How to Measure?

Measuring Advt. Effectiveness

Measuring Advt Effectiveness


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1) Attraction TOM

2) Uniqueness Clear POD

3) Relevant Recall & Association

4) Persuasion Conviction & Loyalty

Ad Pre-testing

Dipstick

Measuring Advt. Effectiveness

Media Decisions


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CONSUMER

PRO

DUCTS

INDUS

TRIALPRO

DUCTS

MEDIUMS

ADVERTISING

PACKAGING

POINT OF SALE

SELLING

PR/SPONSORSHIP

WOM

PROMOTIONS

Media Decisions

Media Decisions


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Awareness Interest Conviction Purchase Post-Purchase

ADVERTISING PROMOTIONS

PERSONAL SELLING

Source: Data Modeling

Objectives

Media Decisions


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Agency Culture in Marketing


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Agency Culture in Marketing

Packaging


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A package is the physical containerorwrapping for a product.

A packaging is also:

Face of the Product

Communication Medium

A Sales person / A Motivator

Packaging @ Different Levels:

1) Raw Materials

2) Manufacturers

3) Retailers

Packaging

Functions of Packaging


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Its functions include:

Defining product identity (Positioning - Green)

Detailing about product (Benefits, Pricing & Storage)

Meeting customer needs (Form & Size)

Protection

Promotion

Educating / Ensuring Safe Use

Regulation (Ingredient & Nutritional Value)

Patented Identification

Functions of Packaging

WHAT IS BRANDING?


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* Desire Positioning

* Actual Positioning

Customer is a value maximizer

Brand is a risk reducer

WHAT IS BRANDING?

Brand is a Risk Reducer


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Functional risk: The product does not perform up to expectations.

Physical risk: The product poses a threat to the physical health ofthe user or others.

Financial risk: The product is not worth the price paid.

Social risk: The product results in embarrassment from others.

Psychological risk: The product affects the mental well-being of

the user.

Time risk: The failure of the product results in an opportunity costoffinding another satisfactory product.

Brand is a Risk Reducer

Role of Sales Force


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Identifying Prospects (Google/McDonalds)

Demonstration (Test Drive)

Closing Sales (Automobiles)

Relationship Building (Petrol Pumps)

Post-Sales Service (Electronics)

Collecting Feedback (Bachat Pack)

Role of Sales Force

Sales Force Design


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Sales Force Design

Sales Territory Design

Geographical Area

Total Market Potential

(Number of possible accounts * Buying power)

Sales Force Design

No of total Customer + Prospects in a territory

Workload

(Current Account * Avg. time to serve an account +

Prospects * Time spent to convert prospect into customer)

Size of Salesforce


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Size of Salesforce

Methods to determine size of Salesforce

Breakdown Method

Salesforce size = Forecasted Sales__________Productivity per sales person

= $10,000,000 / $250,000/sales rep

= 40 sales reps

Uses Sales Value

Easy to use and understand

Best in stable selling environment

Size of Salesforce


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Size of Salesforce


Workload Method

(Number of account * average time spent)

6,300 hours required to cover the market = 6.42 Reps.

980 hours per salesperson, actual selling time

Uses Volume and Selling efforts in time

Conceptually Very Sound Method

Size of Salesforce


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Size of Salesforce


Incremental Method

(Return on Investment Method)

Uses Average Return of Present Sales Person

Comparison of Cost and Return

Marketing Control Process


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Marketing control is the process of taking actions to bring the desired

results and actual result closer.

Many a times actual marketing results deviate from the expected results

due to the change in the g o v er n m e n t r eg u l at io n or change in

c o m p e t i t o r s s t r a t e g y and likewise.

An efficient and effective marketing control system can help in

detecting such deviations and take suitable and appropriate measures

to control them.



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Goal Setting

Performance

Measurement

PerformanceDiagnosis

CorrectiveActions

What do we want to achieve?

What is happening?

Why is it happening?

What should we do about it?


Continuous and Internal

Marketing Audit


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According to American Marketing Association - AMA

Marketing audit is a systematic and impartial

review orappraisal of the total marketing

operation.

Objective:

How well the marketing department of a company works

or functions.

Marketing Audit

Yearly and external

Marketing Audit


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Marketing Audit

Marketing Audit Process


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Marketing Audit Process

Agreement on

objectives. Scope andapproach

Data collectionReport preparation and

presentation

Steps in a Marketing Audit

Marketing Audit Data collection


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Marketing Audit Data collection

Factor All users

rank

Company

salesmen rank

Company Nonsales

personnel rank

Reputation 5 4

Extension of credit 9 11 9

Sales representatives 8 5 7

Technical Support services 6

Literature and Manuals 11 10 11

Prompt Delivery 4 5

Quick Response to

Customers Needs

Product Price 6 6

Personal Relationships 10 7 8

Complete Product Line 7 9 10

Product Quality 4 8

1

3

33

1

1

2

2

2

Marketing Audit


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External Audit focuses on: Internal Audit focuses on:

Business & Economic Environment

Political

Economy

Social

Technological

Sales

Total Sales Revenues

Geographic Reach

Visibility & Availability

Market & Competition

Size

Trends Channels

Customers

Industry Behaviour

Marketing

Planning Vs. Execution

Objective Analysis Desired Brand Vs. Actual

Growth in Market Share

a et g ud t

Industrial Product Classification


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Raw material

Farm products

Natural Products

Manufactured Materials & Parts

Component materials

Component parts

Capital Items Installation Services

Equipment

Product Distribution


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One of the 4Ps

Process ofmaking product available

Direct orThrough Intermediaries (Channels)

Distribution Levels: Zero Level / One Level / Two Level Channel

Distribution Types: Intensive / Selective / Exclusive Distribution

Channel Mix: Different Level + Types at a time

International Marketing


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Why International Marketing is different from Local Marketing:

Culture

Climate

Law and Regulations

Environment: Political, Economical, Sociological and Technological

Trends and Customer Habits

g

International Marketing


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Trade off Between

Standardization Vs. Customization

in Marketing Mix

Product, Price, Place and Promotion

g


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Thank You

[email protected]

MarketingManagement__2013_10_18_09_58_07.pdf

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