Marketing All PDF

Defining Marketing for the
New Realities
(Ref: Text Book Chapter 1)
Dr. Anjani Srikanth Koka
Department of Management
BITS Pilani
Pilani Campus
BA ZC411 / MBA ZC411 – MARKETING

Lecture No. 1
Learning Objectives
1. Why is marketing important?
2. What is the scope of marketing?
3. What are some core marketing concepts?
4. What forces are defining the new marketing realities?
5. What new capabilities have these forces given
consumers and companies?
6. What does a holistic marketing philosophy include?
7. What are the Four Ps?
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Marketing Copyright © 2016 Pearson Education Ltd. 1-3
The Value of Marketing
• Financial success often depends on marketing ability
• Successful marketing builds demand for products

and services, which, in turn, creates jobs
• Marketing builds strong brands and a loyal customer

base, intangible assets that contribute heavily to the
value of a firm
Copyright © 2016 Pearson

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The Scope of Marketing
• Marketing is about identifying and meeting human
and social needs
• AMA’s formal definition: Marketing is the activity, set

of institutions, and processes for creating,
communicating, delivering, and exchanging offerings
that have value for customers, clients, partners, and
society at large

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Marketing Management
• The art and science of choosing target markets
and getting, keeping, and growing customers
through creating, delivering, and
communicating superior customer value

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What is Marketed?
• Goods
• Services
• Events
• Experiences
• Persons

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What is Marketed?
• Places
• Properties
• Organizations
• Information
• Ideas

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Who Markets?
• A marketer is someone who seeks a

response—attention, a purchase, a vote, a
donation—from another party, called the
prospect

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8 Demand States
• Negative
• Nonexistent
• Latent
• Declining
• Irregular
• Unwholesome
• Full
• Overfull
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Fig. 1.1
Structure Of Flows In A Modern
Exchange Economy

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Fig. 1.2
A Simple Marketing System

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Key Customer Markets
• Consumer markets
• Business markets
• Global markets
• Nonprofit & governmental markets

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Core Marketing Concepts
• Needs: the basic human requirements such as
for air, food, water, clothing, and shelter
• Wants: specific objects that might satisfy the

need
• Demands: wants for specific products backed

by an ability to pay

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Types of Needs
STATED
REAL
UNSTATED
DELIGHT
SECRET

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• Target markets
• Positioning
• Segmentation

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• Value proposition: a set of benefits that
satisfy those needs
• Offerings: a combination of products,

services, information, and experiences
• Brands: an offering from a known source

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• Marketing channels
COMMUNICATION
DISTRIBUTION
SERVICE

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• Paid media: TV, magazine and display ads,
paid search, and sponsorships
• Owned media: a company or brand brochure,

web site, blog, Facebook page, or twitter
account
• Earned media: word of mouth, buzz, or viral

marketing
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• Impressions: occur when consumers view a
communication
• Engagement: the extent of a customer’s

attention and active involvement with a
communication

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• Value: a combination of quality, service, and
price (qsp: the customer value triad)
• Satisfaction: a person’s judgment of a

product’s perceived performance in
relationship to expectations

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• Supply chain: a channel stretching from raw materials to
components to finished products carried to final buyers (Fig
1.3: The Supply Chain for Coffee)

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• Competition: all the actual and potential rival
offerings and substitutes a buyer might
consider

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• Marketing
environment
– Task environment
– Broad environment

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The New Marketing Realities
• Technology
• Globalization
• Social responsibility

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Marketing in practice
• Marketing balance
• Marketing accountability
• Marketing in the organization

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Company Orientation toward
the Marketplace
PRODUCTION
PRODUCT
SELLING
MARKETING

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Fig. 1.4
Holistic Marketing Dimensions

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Relationship marketing
CUSTOMERS
EMPLOYEES
MARKETING PARTNERS
FINANCIAL COMMUNITY

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Integrated marketing
• Devise marketing activities and programs that create,
communicate, and deliver value such that “the whole
is greater than the sum of its parts.”

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Internal marketing
• The task of hiring, training, and motivating
able employees who want to serve customers
well

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Performance marketing
FINANCIAL ENVIRONMENTAL
ACCOUNTABILITY IMPACT
SOCIAL IMPACT

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Fig. 1.5
Marketing Mix Components (4 Ps)

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MODERN MARKETING
MANAGEMENT
PEOPLE
PROCESSES
PROGRAMS
PERFORMANCE

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Marketing Excellence
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Marketing Excellence
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Developing Marketing
Strategies and Plans
BITS Pilani
Pilani Campus

Lecture No. 2
Learning Objectives
1. How does marketing affect customer value?
2. How is strategic planning carried out at the
corporate and divisional levels?
3. How is strategic planning carried out at the business
unit level?
4. What does a marketing plan include?
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Marketing and Customer Value
• The value delivery process
• The value chain
• Core competencies
• The central role of strategic planning
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The value delivery process
CHOOSING THE VALUE
PROVIDING THE VALUE
COMMUNICATING THE VALUE
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The Value chain
• A tool for identifying ways to create more
customer value
– Every firm is a synthesis of activities

performed to design, produce, market, deliver,
and support its product
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Core competencies
• A source of competitive advantage and makes
a significant contribution to perceived
customer benefits
• Applications in a wide variety of markets
• Difficult for competitors to imitate
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Central role of strategic planning
• Managing the businesses as an investment
portfolio
• Assessing the market’s growth rate and the

company’s position in that market
• Establishing a strategy
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Marketing plan
• The central instrument for directing and
coordinating the marketing effort
– Strategic
– Tactical
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Figure 2.1
Strategic Planning, Implementation, and
Control Processes
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Corporate and division strategic
planning
• Defining the corporate mission
• Establishing strategic business units
• Assigning resources to each strategic business

unit
• Assessing growth opportunities
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Defining the
corporate mission
• What is our business?
• Who is the customer?
• What is of value to the customer?
• What will our business be?
• What should our business be?
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Product Orientation vs.
Market Orientation
Company Product Market
Missouri-Pacific We run a railroad We are a people-
Railroad and-goods mover
Xerox We make copying We improve office

equipment productivity
Standard Oil We sell gasoline We supply energy
Columbia Pictures We make movies We market

entertainment
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POM
Good Mission statements
• Focus on a limited number of goals
• Stress the company’s major policies and
values
• Define the major competitive spheres within
which the company will operate
• Take a long-term view
• Are as short, memorable, and meaningful as
possible
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POM
Establishing Strategic Business
Units
• A single business or collection of related
businesses
• Has its own set of competitors
• Has a leader responsible for strategic planning

and profitability
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Assigning Resources
to Each SBU
• Management must decide how to allocate
corporate resources to each SBU
– Portfolio-planning models
– Shareholder/market value analysis
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POM
Assessing growth opportunities
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Figure 2.4
The Business Unit
Strategic-planning Process
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POM
1. SWOT Analysis
Strengths
Weaknesses
Opportunities
Threats
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External environment
• Marketing opportunity: an area of buyer need and
interest that a company has a high probability of
profitably satisfying.
• Environmental threat: challenge posed by an

unfavorable trend or development that, in the
absence of defensive marketing action, would lead to
lower sales or profit
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POM
Market Opportunity Analysis
(MOA)
• Can we articulate the benefits convincingly to a
defined target market(s)?
• Can we locate the target market(s) and reach
them with cost-effective media and trade
channels?
• Does our company possess or have access to the
critical capabilities and resources we need to
deliver the customer benefits?
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Market Opportunity Analysis
(MOA)
• Can we deliver the benefits better than
any actual or potential competitors?
• Will the financial rate of return meet or

exceed our required threshold for
investment?
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Figure 2.5
Opportunity And Threat Matrices
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Internal environment
• Strengths
• Weaknesses
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2. Goal formulation (MBO)
• Unit’s objectives must be arranged

hierarchically
• Objectives should be quantitative
• Goals should be realistic
• Objectives must be consistent
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3. Strategic formulation:
Porter’s Generic Strategies
OVERALL COST LEADERSHIP
DIFFERENTIATION
FOCUS
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4&5. Program Formulation and
Implementation
• McKinsey’s Elements of Success
Skills Strategy
Staff Structure
Style Systems
Shared values
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6. Feedback and control
• Peter Drucker: it is more important to “do the
right thing”—to be effective—than “to do
things right”—to be efficient
– The most successful companies, however,

excel at both
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Marketing Plan Contents
✓ Executive summary
✓ Table of contents
✓ Situation analysis
✓ Marketing strategy
✓ Marketing tactics
✓ Financial projections
✓ Implementation controls
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Evaluating a Marketing Plan
✓ Is the plan simple/succinct?

✓ Is the plan complete?
✓ Is the plan specific?
✓ Is the plan realistic?
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Forecasting Demand and
Conducting Market Research
(Ref: Text Book Chapters 4 and 5)
BITS Pilani
Pilani Campus

Lecture No. 3
Learning Objectives
(Forecasting Demand)
1. How can companies accurately measure and

forecast demand
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Forecasting and Demand
Measurement
• Market demand measures
– Potential market
– Available market
– Target market
– Penetrated market
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Figure 4.1
Ninety Types of Demand Measurement
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Demand measurement vocabulary
• Market demand (Figure 4.2)
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Market demand vocabulary
• Market share
• Market-penetration
index
• Share-penetration
index
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Demand measurement vocabulary
Market forecast
Market potential
Company demand
Company sales forecast
Company sales potential

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Estimating Current Demand
• Total market potential
• Area market potential
• Total market potential
– Chain-ratio method
• Area market potential
brand development index (BDI)
Table 4.5
• Industry sales and market share
Estimating future demand
• Survey of buyers’ intentions
– Forecasting and purchase probability scale
• Composite of sales force opinions
• Expert opinion
• Past-sales analysis
• Market-test method
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Learning Objectives (MR)
1. What is the scope of marketing research?
2. What steps are involved in conducting good
marketing research?
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The Scope of
marketing research
• American Marketing Association
– Marketing research is the function that links
the consumer, customer, and public to the
marketer through information—information
used to identify and define marketing
opportunities and problems; generate, refine,
and evaluate marketing actions; monitor
marketing performance; and improve
understanding of marketing as a process.
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The Scope of
marketing research
• Importance of marketing insights
– Generating insights (how and why we observe
certain effects in the marketplace)
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If marketers lack consumer insights…
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The Scope of
marketing research
• Who Does Marketing Research?
✓ Marketing departments in big firms

✓ Everyone at small firms
✓ Syndicated-service research firms
✓ Custom marketing research firms
✓ Specialty-line marketing research firms
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MARKETING
Research conducted
at small companies
Engage
students/prof
essors
Tap
employee Use Internet
creativity
Tap partner Check out

expertise rivals
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Figure 5.1
The Marketing Research Process
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Step 1
• Define the problem
• Define the decision alternatives
• Define the research objectives
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Not to define the problem too broadly
• “Find out everything you can about first-class
air travelers’ needs”
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Not to define the problem too narrowly
• Find out whether enough passengers aboard a

B777 flying direct between Chicago and Tokyo
would pay $25 for ultra high-speed Wi-Fi
service so we can break even in one year on
the cost of offering this service”
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Problem
• Will offering ultra high speed Wi-Fi service
create enough incremental preference and
profit to justify its cost against other service
enhancements AA might make?
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Decision Alternatives
• Should AA offer ultra high-speed Wi-Fi
service?
• If so, should it offer it to first-class only or
include business class and possibly economy
class?
• What price(s) should be charged?
• On what types of planes and lengths of trips
should the service be offered?
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Research Objectives
• What types of first-class passengers would respond
most to ultra high-speed Wi-Fi service?
• How many are likely to use it at different price levels?
• How many might choose AA because of this new
service?
• How much long-term goodwill will this service add to
AA’s image?
• How important is ultra high-speed Wi-Fi service to first-
class passengers relative to other services, such as
power plug or enhanced entertainment?
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Step 2: Develop the Research Plan
• Data Sources
• Research Approaches
• Research Instruments
• Sampling Plan
• Contact Methods
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• Data sources
– Secondary data vs. primary data
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• Research approaches
✓ Observational research
✓ Focus group research
✓ Survey research
✓ Behavioral research
✓Experimental research
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• Research instruments
Questionnaires
Qualitative measures
Technological devices
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Qualitative measures
ZMET Word
approach association
Projective
Laddering techniques
Brand
Visualization
personification
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Dove – ZMET Analysis
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Dove – ZMET Analysis - URL
• https://thefreemindconfluence-wordpress-
com.cdn.ampproject.org/v/s/thefreemindconfluence
.wordpress.com/2018/01/16/dove-brand-zmet-
analysis/amp/?usqp=mq331AQFKAGwASA%3D&amp
_js_v=0.1#aoh=15979857930273&referrer=https%3
A%2F%2Fwww.google.com&amp_tf=From%20%251
%24s&ampshare=https%3A%2F%2Fthefreemindconfl
uence.wordpress.com%2F2018%2F01%2F16%2Fdov
e-brand-zmet-analysis%2F
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• Sampling plan
– Sampling unit: Whom should we survey?
– Sample size: How many people should we

survey?
– Sampling procedure: How should we choose

the respondents?
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• Contact methods
✓ Mail
✓ Telephone
✓ Personal
✓ Online
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Step 3 to Step 6
Step 3: Collect the Information
Step 4: Analyze the Information
Step 5: Present the Findings
Step 6: Make the Decision
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Analyzing Consumer and
Business Markets
(Ref: Text Book Chapters 6 and 7)
BITS Pilani
Pilani Campus

Lecture No. 4
Learning Objectives
(Consumer Markets)
1. How do consumer characteristics influence buying
behavior?
2. How do consumers make purchasing decisions?
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What Influences Consumer
Behavior?
• Consumer behavior
– The study of how individuals, groups, and
organizations select, buy, use, and dispose of
goods, services, ideas, or experiences to
satisfy their needs and wants
– Influenced by cultural, social, and personal
factors
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Behavior?
• Cultural factors
– Culture
– Subcultures
– Social classes
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Behavior?
• Social factors
Reference groups
Cliques
Family
Roles and status
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Behavior?
• Personal factors
– Age/stage in life cycle
– Occupation and
economic
circumstances
– Personality and self-
concept
– Lifestyle and values
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Figure 6.1
Model Of Consumer Behavior
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The Buying
Decision Process
• The consumer typically passes
through five stages
– Problem recognition
– Information search
– Evaluation of alternatives
– Purchase decision
– Postpurchase behavior
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The Buying
Decision Process
• Problem recognition
– The buyer recognizes a problem/need
triggered by internal/external stimuli
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The Buying
Decision Process
• Information search
✓ Personal sources
✓ Commercial sources
✓ Public sources
✓ Experiential sources
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Figure 6.5
Sets Involved In Decision Making
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The Buying
Decision Process
• Evaluation of alternatives
– Expectancy-value model
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The Buying
Decision Process
• Purchase decision
– Compensatory vs. noncompensatory models
Conjunctive heuristic
Lexicographic heuristic
Elimination-by-aspects heuristic
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Intervening factors
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Types of perceived risk
Functional
Physical risk
risk
Time risk Financial risk
Psychological
Social risk
risk
The Buying
Decision Process
• Postpurchase behavior
– Postpurchase
satisfaction
– Postpurchase actions
– Postpurchase uses
and disposal
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Learning Objectives
(Business Markets)
1. What is organizational buying?
2. What buying situations do business buyers face?
3. Who participates in the business-to-business buying process?
4. How do business buyers make their decisions?
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What is
Organizational Buying?
• Business market
– Consists of all the organizations that acquire
goods and services used in the production of
other products or services that are sold,
rented, or supplied to others
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Business markets
• Fewer, larger buyers • Multiple sales calls
• Close supplier–customer • Derived demand
relationships • Inelastic demand
• Professional purchasing • Fluctuating demand
• Multiple buying • Geographically
influences concentrated buyers
• Direct purchasing
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Buying situations
Straight Rebuy
Modified Rebuy
New Task
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The buying center
✓ Initiators
✓ Users
✓ Influencers
✓ Deciders
✓ Approvers
✓ Buyers
✓ Gatekeepers
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Stages in the Buying Process
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• Problem recognition
– Someone in the company recognizes a
problem or need that can be met by acquiring
a good or service
• General need description and product
specification
– Next, the buyer determines the needed item’s
general characteristics, required quantity, and
technical specifications
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• Supplier search
• Proposal solicitation
– The buyer next invites qualified suppliers to
submit written proposals
• Supplier selection
– Before selecting a supplier, the buying center
will specify and rank desired supplier
attributes
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A supplier-evaluation model
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• Order-routine specification
– After selecting suppliers, the buyer negotiates
the final order, listing the technical
specifications, the quantity needed, the
expected time of delivery, return policies,
warranties, etc.
• Performance review
– The buyer periodically reviews the
performance of the chosen supplier(s)
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Identifying Market Segments and
Targets

BITS Pilani
Pilani Campus

Lecture No. 5
Learning Objectives
1. In what ways can a company divide the consumer
market into segments?
2. How should business markets be segmented?
3. What are the requirements for effective
segmentation?
4. What are the different levels of market
segmentation?
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Bases for Segmenting Consumer
Markets
• Market segment
– A group of customers who share a similar set
of needs and wants
Demographic
Geographic segmentation
segmentation
Psychographic
Behavioral segmentation
segmentation
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Geographic Segmentation
• Geographical units
– Nations, states, regions, counties, cities, or
neighborhoods
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Demographic Segmentation
Age & life-

Life stage
cycle stage
Race & Gender

culture
Generation Income
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Psychographic Segmentation
• Buyers are divided into groups on the basis of
psychological/personality traits, lifestyle, or
values
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Figure 9.1: VALS
Segmentation System
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Behavioral Segmentation
• Marketers divide buyers into groups on the
basis of their knowledge of, attitude toward,
use of, or response to a product
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Behavioral Segmentation
• Needs and benefits
• Decision roles
– Initiator
– Influencer
– Decider
– Buyer
– User
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User and usage-related variables
Occasions User status
Attitude Usage rate
Buyer-
Loyalty status readiness
stage
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Figure 9.3
Behavioral Segmentation Breakdown
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How Should Business Markets Be
Segmented?
✓ Demographic
✓ Operating variables
✓ Purchasing approaches
✓ Purchasing approaches
✓ Situational factors
✓ Personal characteristics
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Market targeting
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Effective
Segmentation Criteria
✓ Measurable
✓ Substantial
✓ Accessible
✓ Differentiable
✓ Actionable
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Evaluating & Selecting the Market
Segments
• Figure 9.4: Possible Levels of Segmentation
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HSBC Case
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HSBC Case
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Question 1
• What were the risks and benefits of HSBC’s
positioning itself as the “World’s Local Bank”?
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Sample Solution
• Successful target marketing includes
segmentation, targeting, and market
positioning well.
• HSBC positioning as the “world’s local bank”
requires HSBC to be very accurate and
definitive in its execution of these three
activities across all of the world’s countries, a
huge undertaking.
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Question 2
• Evaluate HSBC’s recent business and
marketing shift. How do you think its current
ad campaign and tagline, “HSBC helps you
unlock the world’s potential,” resonate with its
key consumers?
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MARKETING
Sample Solution
• We can comment on how this most recent
campaign embraces the notion of multiple
viewpoints and different interpretations
across countries and people.
• Also, according to the note, this strategy is
stated as “It encapsulates our global outlook
that acknowledges and respects that people
value things in very different ways.”
5/9/2020 BA MBA ZC411

MARKETING
5/9/2020 BA MBA ZC411
MARKETING
Brand Positioning

BITS Pilani
Pilani Campus

Lecture No. 6
Learning Objectives
1. How can a firm develop and establish an effective
positioning in the market?
2. How do marketers identify and analyze competition?
3. How are brands successfully differentiated?
4. How do firms communicate their positioning?
6/9/2020 BA MBA ZC411

MARKETING
Developing a Brand Positioning
• Positioning
– The act of designing a
company’s offering and
image to occupy a
distinctive place in the
minds of the target
market
– Value proposition
6/9/2020 BA MBA ZC411

MARKETING
Value proposition
6/9/2020 BA MBA ZC411

MARKETING
Competitive Frame
of Reference
• Competitive frame of reference
– Defines which other brands a brand competes
with and which should thus be the focus of
competitive analysis
– Identifying and analyzing competitors
6/9/2020 BA MBA ZC411

MARKETING
Competitive Frame
of Reference
6/9/2020 BA MBA ZC411

MARKETING
Points-of-Difference
and Points-of-Parity
• Points-of-difference
(PODs)
– Attributes/benefits that
consumers strongly
associate with a brand,
positively evaluate,
and believe they could
not find to the same
extent with a
competitive brand
6/9/2020 BA MBA ZC411
MARKETING
• POD criteria
Desirable
Deliverable
Differentiating
6/9/2020 BA MBA ZC411

MARKETING
• Points-of-parity (POPs)
– Attribute/benefit associations that are not
necessarily unique to the brand but may in
fact be shared with other brands
6/9/2020 BA MBA ZC411

MARKETING
• POP forms
Category
Correlational
Competitive
6/9/2020 BA MBA ZC411

MARKETING
Pop vs. pod
• Multiple Frames of
Reference
• Straddle Positioning
6/9/2020 BA MBA ZC411

MARKETING
• Choosing specific
POPs and PODs
– Competitive
advantage
– Means of
differentiation
– Perceptual map
– Emotional
branding
6/9/2020 BA MBA ZC411
MARKETING
• Brand mantras
Communicate
Simplify
Inspire
6/9/2020 BA MBA ZC411

MARKETING
Establishing a Brand Positioning
• Communicating category membership
Announcing category benefits
Comparing to exemplars
Relying on product descriptor
6/9/2020 BA MBA ZC411

MARKETING
Communicating
POPs and PODs
• Negatively correlated attributes/benefits
✓ Low price vs. high quality

✓ Taste vs. low calories
✓ Powerful vs. safe
✓ Ubiquitous vs. exclusive
✓ Varied vs. simple
6/9/2020 BA MBA ZC411

MARKETING
Monitoring Competition
• Variables in assessing
potential competitors
– Share of market
– Share of mind
– Share of heart
6/9/2020 BA MBA ZC411

MARKETING
Nespresso
6/9/2020 BA MBA ZC411

MARKETING
Nespresso
6/9/2020 BA MBA ZC411

MARKETING
Sample Solution for Q1
• Nespresso was first launched in the professional market
(businesses and restaurants located in Switzerland, Italy, and
Japan) as a machine/capsule system that had a single-utility
function of serving coffee.
• The high cost of the product explains the failure of Nespresso on
the market initially. By repositioning itself as an asset of great
value, not only as an expensive, high-end product, exclusively
targeted to high-income groups, Nespresso has been able
recover its place in the market. Nespresso customers feel they
belong to a privileged community—the brand responds to the
consumers’ need for esteem and recognition.
• A strong customer service and a good communication strategy
also add to the brand’s value.
6/9/2020 BA MBA ZC411
MARKETING
Sample Solution for Q2
• Nespresso has revolutionized the coffee market as a result of its
high-quality system of machines and coffee capsules. This
innovation resulted in drastic changes in the consumption of
coffee at home – a certain ease of preparation, espresso with
good coffees, and well-designed machines came to be associated
with the brand. Nespresso has the pioneer advantage in this
market, and has succeeded in building a strong relationship with
consumers. A brand inspired from this business model would be
perceived as a “me-too” brand. Only a brand bringing in new
innovation in the market for coffee could compete with
Nespresso, which is currently not the case. Douwe Egberts has
significant financial resources but lacks innovation, and, for the
moment, Nespresso’s market shares remain safe.
6/9/2020 BA MBA ZC411
MARKETING
6/9/2020 BA MBA ZC411
MARKETING
Addressing Competition and
Driving Growth

BITS Pilani
Pilani Campus

Lecture No. 7
Learning Objectives
1. Why is it important for companies to grow the core of
their business?
2. How can market leaders expand the total market and
defend market share?
3. How should market challengers attack market leaders?
4. How can market followers or nichers compete effectively?
5. What marketing strategies are appropriate at each stage of
the product life cycle?
12/9/2020 BA MBA ZC411

MARKETING Session 07
Growth strategies
• Building your market share • International expansion
• Developing committed • Acquisitions, mergers, and
customers and stakeholders alliances
• Building a powerful brand • Building an outstanding
• Innovating new products, reputation for social
services, and experiences responsibility
• Partnering with
government and NGOs
12/9/2020 BA MBA ZC411

Growing the Core
Make the core of the brand as distinctive

as possible
Drive distribution through both existing

and new channels
Offer the core product in new formats or

versions
12/9/2020 BA MBA ZC411

Competitive Strategies
for Market Leaders
• Expanding total market
demand
• Protecting market share
• Increasing market share
12/9/2020 BA MBA ZC411

1. Expanding total market demand
• New customers
• More usage from existing customers
12/9/2020 BA MBA ZC411

2. Protecting market share
• Proactive
marketing
– Responsive
anticipation
– Creative
anticipation
12/9/2020 BA MBA ZC411

Protecting market share
• Defensive marketing
12/9/2020 BA MBA ZC411

3. Increasing market share
• The cost of buying higher market share
through acquisition may far exceed its
revenue value
Possibility of provoking
Economic cost
antitrust action
Pursuing wrong marketing Increased market share

activities effect on quality
12/9/2020 BA MBA ZC411

Figure 12.3
Optimal Market Share
12/9/2020 BA MBA ZC411

Other Competitive Strategies
• Market-Challenger Strategies
• Market-Follower Strategies
• Market-Nicher Strategies
12/9/2020 BA MBA ZC411

Market-Challenger Strategies
• Defining the strategic objective and
opponent(s)
A market challenger can attack:

✓ The market leader
✓ Small local and regional firms
✓ The status quo
12/9/2020 BA MBA ZC411

Market-Challenger Strategies
• Choosing a general attack strategy
12/9/2020 BA MBA ZC411

Market-Follower Strategies
Cloner
Imitator
Adapter
12/9/2020 BA MBA ZC411

Market-Nicher Strategies
• To be a leader in a
small market
– Firms with low shares
of the total market
can become highly
profitable through
smart niching
12/9/2020 BA MBA ZC411

Product Life-Cycle Marketing
Strategies
• A company’s
positioning and
differentiation strategy
must change as its
product, market, and
competitors change
over the PLC
12/9/2020 BA MBA ZC411

Figure 12.6
Common Product Life-Cycle Patterns
12/9/2020 BA MBA ZC411

Figure 12.7
Style, Fashion, And Fad Life Cycles
12/9/2020 BA MBA ZC411

Marketing Strategies: Introduction
Stage
• Pioneering advantages
– Recall of brand name
– Establishes product class attributes
– Captures more uses in middle of market
• Pioneering drawbacks
– Imitators can surpass innovators
– Once leadership is lost, it’s rarely regained
12/9/2020 BA MBA ZC411

Figure 12.8
Long-Range Product Market
Expansion Strategy
12/9/2020 BA MBA ZC411

Marketing Strategies: Growth
Stage
• To sustain rapid market share growth now:
– Improve product quality and add new features
– Add new models and flanker products
– Enter new market segments
– Increase distribution coverage and enter new
distribution channels
– Shift from awareness and trial communications to
preference and loyalty communications
– Lower prices to attract the next layer of price-sensitive
buyers
12/9/2020 BA MBA ZC411

Marketing Strategies: Maturity
Stage
Market modification
Product modification
Marketing program
modification
12/9/2020 BA MBA ZC411

Market Modification
12/9/2020 BA MBA ZC411

Marketing Strategies: Decline Stage
• Eliminating Weak Products
• Harvesting and Divesting
12/9/2020 BA MBA ZC411

12/9/2020 BA MBA ZC411
Setting Product Strategy

BITS Pilani
Pilani Campus

Lecture No. 9
Learning Objectives
1. What are the characteristics of products, and how do
marketers classify product?
2. How can companies differentiate products?
3. Why is product design important, and what are the
different approaches taken?
4. How can marketers best manage luxury brands?
5. What environmental issues must marketers consider in
their product strategies?
6. How can a company build and manage its product mix and
product lines?
19/9/2020 BA MBA ZC411

MARKETING Session 9
Learning Objectives
7. How can companies combine products to create
strong co-brands or ingredient brands?
8. How can companies use packaging, labeling,
warranties, and guarantees as marketing tools?
19/9/2020 BA MBA ZC411

MARKETING Session 9
Product Characteristics
and Classifications
• Product
– Anything that can be
offered to a market to
satisfy a want or need,
including physical goods,
services, experiences,
events, persons, places,
properties, organizations,
information, and ideas
19/9/2020 BA MBA ZC411

MARKETING Session 9
Figure 13.1
Components Of The Market Offering
19/9/2020 BA MBA ZC411

MARKETING Session 9
Product Levels: The Customer-Value
Hierarchy
• Figure 13.2: Five Product Levels
19/9/2020 BA MBA ZC411

MARKETING Session 9
Product Classifications
Durability
Tangibility
Use
19/9/2020 BA MBA ZC411

MARKETING Session 9
Durability and Tangibility
Nondurable goods
Durable goods
Services
19/9/2020 BA MBA ZC411

MARKETING Session 9
Consumer-Goods Classification
Convenience
Shopping
Specialty
Unsought
19/9/2020 BA MBA ZC411

MARKETING Session 9
Industrial-Goods Classification
Materials and parts
Capital items
Supplies and business

services
19/9/2020 BA MBA ZC411

MARKETING Session 9
Product Differentiation
• Form • Reliability
• Features • Reparability
• Performance quality • Style
• Conformance quality • Customization
• Durability
19/9/2020 BA MBA ZC411

MARKETING Session 9
Services Differentiation
✓ Ordering ease
✓ Delivery
✓ Installation
✓ Customer training
✓ Customer consulting
✓ Maintenance and repair
✓ Returns
19/9/2020 BA MBA ZC411

MARKETING Session 9
Design
• Design
– The totality of
features that affect
the way a product
looks, feels, and
functions to a
consumer
19/9/2020 BA MBA ZC411

MARKETING Session 9
Luxury brands
• Quality
• Uniqueness
• Craftsmanship
• Heritage
• Authenticity
• History
19/9/2020 BA MBA ZC411

MARKETING Session 9
Environmental Issues
• Environmental issues are
also playing an
increasingly important
role in product design
and manufacturing
The Product Hierarchy
6. Item
5. Product
type
4. Product
line
3. Product
class
2. Product
family
1. Need
family
19/9/2020 BA MBA ZC411

MARKETING Session 9
Product Systems
and Mixes
• Product system
• Product
mix/assortment
– Width
– Length
– Depth
– Consistency
19/9/2020 BA MBA ZC411

MARKETING Session 9
Product Line Analysis
• Sales and profits
19/9/2020 BA MBA ZC411

MARKETING Session 9
Product Line Analysis
• Market profile and image
19/9/2020 BA MBA ZC411

MARKETING Session 9
Product line length
• Line stretching
– Down-market stretch
– Up-market stretch
– Two-way stretch
• Line filling
• Line modernization
• Line featuring
• Line pruning
19/9/2020 BA MBA ZC411
MARKETING Session 9
Product Mix Pricing
• The firm searches for a set of prices that
maximizes profits on the total mix
Optional-
Product line
feature
pricing
pricing
Product- Captive-
bundling product
pricing pricing
By-product Two-part
pricing pricing
19/9/2020 BA MBA ZC411

MARKETING Session 9
Co-Branding
• Two or more well-known brands are combined
into a joint product or marketed together in
some fashion
✓ Same-company
✓ Joint-venture
✓ Multiple-sponsor
✓ Retail
19/9/2020 BA MBA ZC411

MARKETING Session 9
Ingredient Branding
• Co-branding that creates brand equity for
parts that are necessarily contained within
other branded products
19/9/2020 BA MBA ZC411

MARKETING Session 9
Packaging
• All the activities of designing and producing
the container for a product
19/9/2020 BA MBA ZC411

MARKETING Session 9
Packaging
Used as a marketing tool Packaging objectives
• Self-service • Identify the brand
• Consumer affluence • Convey descriptive and
• Company and brand image persuasive information
• Innovation opportunity • Facilitate product
transportation and
protection
• Assist at-home storage
• Aid product consumption
19/9/2020 BA MBA ZC411

MARKETING Session 9
Labeling, Warranties, and
Guarantees
• Labeling
– Identifies, grades, describes, and promotes
the product
• Warranties
– Formal statements of expected product
performance by the manufacturer
• Guarantees
– Promise of general or complete satisfaction
19/9/2020 BA MBA ZC411

MARKETING Session 9
19/9/2020 BA MBA ZC411
MARKETING Session 9
Designing and Managing Services

BITS Pilani
Pilani Campus

Lecture No. 10
Learning Objectives
1. How can services be defined and classified, and how
do they differ from goods?
2. What are the new services realities?
3. How can companies achieve excellence in services
marketing?
4. How can companies improve service quality?
5. How can goods marketers improve customer-
support services?
20/9/2020 BA MBA ZC411

The Nature of Services
• Service
– Any act or performance one party can offer to
another that is essentially intangible and does
not result in the ownership of anything
20/9/2020 BA MBA ZC411

Categories of
Service Mix
• A pure tangible good
• A tangible good with
accompanying services
• A hybrid
• A major service with
accompanying minor
goods/services
• A pure service
20/9/2020 BA MBA ZC411

Service distinctions
✓ Equipment- or people-based
✓ Different processes of delivery
✓ Some need client’s presence
✓ Meets personal or business need
✓ Differs in objectives and ownership
20/9/2020 BA MBA ZC411

Figure 14.1
Evaluation Continuum for Product Types
20/9/2020 BA MBA ZC411

Characteristics
of Services
Intangibility
Inseparability
Variability
Perishability
20/9/2020 BA MBA ZC411

Intangibility
• Services cannot be seen, tasted, felt, heard, or
smelled
Physical evidence and presentation tools:
✓ Place
✓ People
✓ Equipment
✓ Communication material
✓ Symbols
✓ Price
20/9/2020 BA MBA ZC411

Inseparability
• Services are typically produced and consumed
simultaneously
20/9/2020 BA MBA ZC411

Variability
• The quality of
services depends on
who provides them,
when and where,
and to whom
– As such, services
are highly variable
20/9/2020 BA MBA ZC411

Perishability
• Services cannot be stored
• Strategies to match demand & supply
On demand side On supply side

• Differential pricing • Part-time employees
• Nonpeak demand • Peak-time efficiency routines
• Complementary services • Increased consumer
• Reservation services participation
• Shared services
• Facilities for future expansion
20/9/2020 BA MBA ZC411

Figure 14.2
Blueprint for Overnight Hotel Stay
20/9/2020 BA MBA ZC411

New Services Realities
• A shifting customer
relationship
– Customer
empowerment &
coproduction
– Satisfying employees
as well as customers
20/9/2020 BA MBA ZC411

Achieving Excellence
In Services Marketing
• Marketing excellence
20/9/2020 BA MBA ZC411

Best Practices of Top Service
Companies
Top-
Strategic
management
concept
commitment
Satisfying High
customer standards
complaints
Monitoring
Profit tiers
systems
20/9/2020 BA MBA ZC411

Figure 14.4
Importance-Performance Analysis
20/9/2020 BA MBA ZC411

Differentiating Services
• Primary and secondary
service options
• Innovation with
services
20/9/2020 BA MBA ZC411

Managing Service Quality
• Customer switching behavior factors
✓ Pricing
✓ Inconvenience
✓ Core service failure
✓ Service encounter failures
✓ Response to service failure
✓ Competition
✓ Ethical problems
✓ Involuntary switching
20/9/2020 BA MBA ZC411
Figure 14.5
service-quality model
20/9/2020 BA MBA ZC411

Improving
Service Quality
• Listening • Surprising customers
• Reliability • Fair play
• Basic service • Teamwork
• Service design • Employee research
• Recovery • Servant leadership
20/9/2020 BA MBA ZC411

Extending the Service-Quality
Model
• Dynamic process model of improved service
quality perceptions
– Increasing customer expectations of what the
firm will deliver
– Decreasing customer expectations of what
the firm should deliver
20/9/2020 BA MBA ZC411

Managing Product-Support
Services
• Three types of customer worries
Failure frequency
Downtime
Out-of-pocket costs
20/9/2020 BA MBA ZC411

Postsale Service Strategy
• Customer-service evolution
• The customer-service imperative
20/9/2020 BA MBA ZC411

20/9/2020 BA MBA ZC411
Developing Pricing Strategies and Programs

BITS Pilani
Pilani Campus

Lecture No. 11
Learning Objectives
1. How do consumers process and evaluate prices?
2. How should a company set prices initially for products or
services?
3. How should a company adapt prices to meet varying
circumstances and opportunities?
4. When and how should a company initiate a price change?
5. How should a company respond to a competitor’s price
change?
03/10/2020 BA MBA ZC411

Understanding Pricing
• Pricing in a digital world
✓ Get instant vendor price comparisons
✓ Check prices at the point of purchase
✓ Name your price and have it met
✓ Get products free
✓Monitor customer behavior & tailor offers

✓ Give customers access to special prices
✓ Negotiate prices online or even in person

03/10/2020 BA MBA ZC411
Understanding Pricing
• How companies price
– Small companies: boss
– Large companies: division/product line
managers
• How companies should price
– Understanding of consumer pricing
psychology
– a systematic approach to setting, adapting,
and changing prices
03/10/2020 BA MBA ZC411
Consumer Psychology and Pricing
Reference prices
Price-quality inferences
Price endings
03/10/2020 BA MBA ZC411

Setting the Price
03/10/2020 BA MBA ZC411

Step 1: Selecting the Pricing
Objective
Maximum
Survival
current profit
Other Maximum
objectives market share
Maximum
Product-quality
market
leadership
skimming
03/10/2020 BA MBA ZC411

Step 2:
Determining Demand
• Price sensitivity
• Estimating demand
curves
– Surveys, price
experiments, &
statistical analysis
• Price elasticity of
demand
03/10/2020 BA MBA ZC411

Figure 16.1
Inelastic And Elastic Demand
03/10/2020 BA MBA ZC411

Price Sensitivity
03/10/2020 BA MBA ZC411

Step 3: Estimating Costs
• Types of costs and levels of
production
– Fixed vs. variable costs
– Total costs
– Average cost
03/10/2020 BA MBA ZC411

• Accumulated production
– Experience/learning curve
03/10/2020 BA MBA ZC411

• Target costing
– Price less desired profit margin
03/10/2020 BA MBA ZC411

Step 4: Analyzing Competitors’
Prices
• Firm must take competitors’ costs, prices, &
reactions into account
– Value-priced competitors
03/10/2020 BA MBA ZC411

Step 5: Selecting a Pricing Method
• Figure 16.4: three major
considerations in price
– Costs = price floor
– Competitors’ prices =
orienting point
– Customers’ assessment of
unique features = price
ceiling
03/10/2020 BA MBA ZC411

• Markup pricing
– Add a standard markup to the product’s cost
03/10/2020 BA MBA ZC411

• Target-return pricing
– Price that yields its target rate of return on
investment
03/10/2020 BA MBA ZC411

Figure 16.5
Break-Even for Target-Return Price
03/10/2020 BA MBA ZC411

• Perceived-value pricing
– Based on buyer’s image of product, channel
deliverables, warranty quality, customer
support, and softer attributes (e.g., reputation)
03/10/2020 BA MBA ZC411

• Value pricing
• EDLP
– High-low pricing
• Going-rate pricing
03/10/2020 BA MBA ZC411

• Auction-type pricing
English (ascending)
Dutch (descending)
Sealed-bid
03/10/2020 BA MBA ZC411

Step 6: Selecting the Final Price
• Additional factors to select final price:
✓ Impact of other marketing activities

✓ Company pricing policies
✓ Gain-and-risk-sharing pricing
✓ Impact of price on other parties
03/10/2020 BA MBA ZC411

Adapting the Price
• Geographical pricing
03/10/2020 BA MBA ZC411

Adapting the Price
• Price discounts and allowances
03/10/2020 BA MBA ZC411

Adapting the Price
• Promotional pricing:
• Loss-leader pricing • Low-interest financing

• Special event pricing • Longer payment terms
• Special customer pricing • Warranties/service
• Cash rebates contracts
• Psychological discounting
03/10/2020 BA MBA ZC411

Adapting the Price
• Price discrimination
Customer-
Product-form
segment
pricing
pricing
Time pricing Image pricing
Channel
Location pricing
pricing
03/10/2020 BA MBA ZC411

Adapting the Price
• Price discrimination
– Yield pricing
03/10/2020 BA MBA ZC411

Initiating and Responding to Price
Changes
• Initiating price cuts
– Excess plant capacity
– Domination of market
• Price-cutting traps
– Low-quality
– Fragile market share
– Shallow pockets
– Price war
03/10/2020 BA MBA ZC411

Changes
• Initiating price increases
✓ Delayed quotation pricing

✓ Escalator clauses
✓ Unbundling
✓ Reduction of discounts
03/10/2020 BA MBA ZC411

Initiating Price Increases
03/10/2020 BA MBA ZC411

Changes
• Anticipating competitive
responses
• Responding to
competitors’ price
changes
03/10/2020 BA MBA ZC411

03/10/2020 BA MBA ZC411
Designing and Managing Integrated
Marketing Channels
BITS Pilani
Pilani Campus

Lecture No. 12
Learning Objectives
1. What is a marketing channel system and value

network?
2. What work do marketing channels perform?
3. How should channels be designed?
4. What decisions do companies face in managing their
channels?
5. How should companies integrate channels?
04/10/2020 BA MBA ZC411

Learning Objectives
6. What are the key channel issues in e-commerce?

7. What are the key channel issues in m-commerce?
8. How should companies manage channel conflict?
04/10/2020 BA MBA ZC411

Marketing Channels
and Value Networks
• Marketing channels
– Sets of interdependent
organizations participating
in the process of making a
product or service
available for use or
consumption
– Intermediaries:
merchants, agents, and
facilitators
04/10/2020 BA MBA ZC411
Marketing Channels
and Value Networks
• A marketing channel system
– The particular set of marketing channels a
firm employs
– Push vs. pull strategy
04/10/2020 BA MBA ZC411

Marketing Channels
and Value Networks
• Multichannel marketing
– Using two or more
marketing channels to
reach customer segments
in one market area
– Omnichannel marketing
– Integrated marketing
channel system
04/10/2020 BA MBA ZC411

Figure 21.1
The Hybrid Grid
04/10/2020 BA MBA ZC411

Marketing Channels
and Value Networks
• Value network
– A system of partnerships and alliances that a firm
creates to source, augment, and deliver its
offerings
– Demand chain planning
04/10/2020 BA MBA ZC411

Marketing Channels
and Value Networks
• The digital channels
revolution
– Customer support in
store/online/phone
– Check online for product
availability at local stores
– Order product online to
pick up at store
– Return a product
purchased online to a
nearby store
04/10/2020 BA MBA ZC411
The Role of
Marketing Channels
• Channel levels
– Zero-level channel
(direct)
– One/two/three-level
channels
(intermediaries)
– Reverse-flow channels
04/10/2020 BA MBA ZC411

Figure 21.3
Consumer/Industrial Marketing Channels
04/10/2020 BA MBA ZC411

Channel-Design Decisions
• Analyzing customer needs and wants
✓ Desired lot size

✓ Waiting and delivery time
✓ Spatial convenience
✓ Product variety
✓ Service backup
04/10/2020 BA MBA ZC411

• Establishing objectives and constraints
04/10/2020 BA MBA ZC411

• Identifying major channel alternatives
Types of intermediaries
Number of intermediaries
Terms/responsibilities of
channel members
04/10/2020 BA MBA ZC411

Identifying major channel
alternatives
• Number of
intermediaries
– Exclusive
distribution
– Selective
distribution
– Intensive
distribution
04/10/2020 BA MBA ZC411

Identifying Major Channel
Alternatives
• Terms and responsibilities of channel
members
✓ Price policy
✓ Conditions of sale
✓ Distributors’ territorial rights
✓ Mutual services and responsibilities
04/10/2020 BA MBA ZC411

• Evaluating major channel alternatives
– Economic criteria
– Control and adaptive criteria
04/10/2020 BA MBA ZC411

Channel-Management Decisions
Selecting Training
channel channel
members members
Evaluating
Global channel channel
considerations members
Channel Modifying
modification channel
decisions design
04/10/2020 BA MBA ZC411

Training and Motivating Channel
Members
• Channel power
Coercive
Reward
Legitimate
Expert
Referent
04/10/2020 BA MBA ZC411
Channel Integration and Systems
• Vertical marketing
systems
• Horizontal marketing
systems
04/10/2020 BA MBA ZC411

Vertical
Marketing Systems
• Corporate VMS
• Administered VMS
• Contractual VMS
– Wholesaler-sponsored voluntary chains
– Retailer cooperatives
– Franchise organizations
• New competition in retailing
04/10/2020 BA MBA ZC411

E-Commerce
Marketing Practices
• E-commerce
– Uses a Web site to transact or facilitate the
sale of products and services online
• Pure-click vs. brick-and-click companies
04/10/2020 BA MBA ZC411

M-Commerce
Marketing Practices
• Mobile channels and media can keep
consumers as connected and interacting with
a brand as they choose
– Advertising and promotion
– Geofencing
• Privacy issues
04/10/2020 BA MBA ZC411

Conflict, Cooperation,
and Competition
• Channel conflict
– Generated when one channel member’s
actions prevent another channel member from
achieving its goal
• Channel coordination
– Occurs when channel members are brought
together to advance the goals of the channel
instead of their own potentially incompatible
goals
04/10/2020 BA MBA ZC411
and Competition
• Types of conflict and competition
Horizontal channel conflict
Vertical channel conflict
Multichannel conflict
04/10/2020 BA MBA ZC411

and Competition
• Causes of channel conflict
✓ Goal incompatibility
✓ Unclear roles and rights
✓ Differences in perception
✓ Intermediaries’ dependence on
manufacturer
04/10/2020 BA MBA ZC411

and Competition
04/10/2020 BA MBA ZC411

04/10/2020 BA MBA ZC411
Managing Retailing and
Wholesaling
BITS Pilani
Pilani Campus

Lecture No. 13
Learning Objectives
1. What major types of marketing intermediaries occupy this
sector?
2. What marketing decisions do marketing intermediaries
make?
3. What does the future hold for private label brands?
4. What are some of the important issues in wholesaling?
24/10/2020 BA MBA ZC411

Retailing
• Retailing
– All the activities in selling
goods or services directly to
final consumers for personal,
nonbusiness use
• Retailer/retail store
– Any business enterprise
whose sales volume comes
primarily from retailing
24/10/2020 BA MBA ZC411
Types of retailers
• Store retailers, nonstore retailers, and retail
organizations
24/10/2020 BA MBA ZC411

Types of store retailers
• Specialty store • Discount store

• Department store • Extreme value or hard-
• Supermarket discount store
• Convenience store • Off-price retailer
• Drug store • Superstore
• Catalog showroom
24/10/2020 BA MBA ZC411

Nonstore retailing
– Direct marketing
– Direct selling
– Automatic vending
– Buying services
24/10/2020 BA MBA ZC411

Corporate Retail Organizations
24/10/2020 BA MBA ZC411

Marketing Decisions
• Target market • Services

• Channels • Store atmosphere
• Product assortment • Store activities and
• Procurement experiences
• Prices • Communications
• Location
24/10/2020 BA MBA ZC411

Private Labels
• A private-label brand is a brand that retailers
and wholesalers develop
– Role of private labels
– Private-label success factors
24/10/2020 BA MBA ZC411

Wholesaling
• Wholesaling includes
all the activities in
selling goods or
services to those
who buy for resale
or business use
24/10/2020 BA MBA ZC411

Major wholesaler types
Merchant Full-service
wholesalers wholesalers
Limited-
Specialized
service
wholesalers
wholesalers
Manufacturers’/
Brokers and
retailers’
agents
branches/offices
24/10/2020 BA MBA ZC411

Wholesaler functions
• Selling and promoting • Transportation

• Buying and • Financing
assortment building • Risk bearing
• Bulk breaking • Market information
• Warehousing • Management services
and counseling
24/10/2020 BA MBA ZC411

24/10/2020 BA MBA ZC411
Designing and Managing Integrated
Marketing Communications
BITS Pilani
Pilani Campus

Lecture No. 14
Learning Objectives
1. What is the role of marketing communications?
2. How do marketing communications work?
3. What are the major steps in developing effective
communications?
KELLOGG’S CORNFLAKES IN INDIA
7/11/2020 BA MBA ZC411

The Role of Marketing
Communications
• Marketing communications
– The means by which firms attempt to inform,
persuade, and remind consumers about the
products and brands they sell
7/11/2020 BA MBA ZC411

How Does Marketing
Communications Work?
• The communications
process models
– Macromodel of the
communications
process
– Micromodel of
consumer responses
7/11/2020 BA MBA ZC411

Figure 17.1
Elements in Communications Process
7/11/2020 BA MBA ZC411

Figure 17.2
Response Hierarchy Models
7/11/2020 BA MBA ZC411

Developing Effective
Communications – Eight steps
7/11/2020 BA MBA ZC411

Communications
1. Identify the target audience
2. Set the communications
objectives
– Establish need for category
– Build brand awareness
– Build brand attitude
– Influence brand purchase
intention
7/11/2020 BA MBA ZC411

Communications
3. Design the Communications
Message strategy
Creative strategy
Message source
7/11/2020 BA MBA ZC411

Communications
4. Select the communications channels
– Personal communications channels
– Nonpersonal communications channels
7/11/2020 BA MBA ZC411

5. Establish the Marketing
Communications Budget
• Affordable method
• Percentage-of-sales
method
• Competitive-parity method
• Objective-and-task
method
7/11/2020 BA MBA ZC411

6. Selecting the Marketing
Communications Mix
• Advertising
• Sales promotion
• Events and experiences
• Public relations and publicity
• Online and social media marketing
• Mobile marketing
• Direct and database marketing
• Sales force
7/11/2020 BA MBA ZC411
Factors in setting the Marketing
Communications Mix
• Type of product market
• Buyer-Readiness Stage
• Product life-cycle stage
7/11/2020 BA MBA ZC411

7. Measuring Communication
Results
7/11/2020 BA MBA ZC411

8. Managing the IMC process
• Integrated marketing communications (IMC)
– “A planning process designed to assure that
all brand contacts received by a customer or
prospect for a product, service, or
organization are relevant to that person and
consistent over time”
7/11/2020 BA MBA ZC411

How Integrated Is Your IMC Program?
Coverage Contribution
Cost Commonality
Conformability Complementarity
7/11/2020 BA MBA ZC411

Kellogg’s Cornflakes in India
• What was the positioning for Kellogg’s
cornflakes at the time of launch?
• Why was the brand not successful? What

changes were made to the positioning?
• What do you think should be the brand

proposition going forward?
7/11/2020 BA MBA ZC411
7/11/2020 BA MBA ZC411
Managing Mass Communications:
Advertising and Sales Promotions
BITS Pilani
Pilani Campus

Lecture No. 15
Learning Objectives
1. What steps are required in developing an
advertising program?
2. How should marketers choose advertising media
and measure their effectiveness?
3. How should sales promotion decisions be made?
08/11/2020 BA MBA ZC411

The Five Ms of Advertising
• Setting the advertising objectives (Mission)
• Deciding on the advertising budget (Money)
• Developing the advertising campaign (Message)
• Choosing media (Media)
• Evaluating advertising effectiveness (Measurement)
08/11/2020 BA MBA ZC411

1. Setting the
Advertising Objectives
Informative
Persuasive
Reminder
Reinforcement
08/11/2020 BA MBA ZC411

2. Deciding on the Advertising
Budget
 Stage in the product life cycle

 Market share and consumer base
 Competition and clutter
 Advertising frequency
 Product substitutability
08/11/2020 BA MBA ZC411

3. Developing the Advertising
Campaign
a. Message generation and
evaluation
– Positioning of an ad—what
it attempts to convey about
the brand
– Creative brief
– Open
sourcing/crowdsourcing
08/11/2020 BA MBA ZC411

Developing the Advertising
Campaign
b. Creative development and execution
– Advertising medium (television, print, and
radio advertising media)
08/11/2020 BA MBA ZC411

Developing the Advertising
Campaign
c. Legal and social issues
– Advertisers must not make false claims
– Must not use false demonstrations
– Must not create ads with the capacity to
deceive
– Must avoid bait-and-switch advertising
08/11/2020 BA MBA ZC411

4. Choosing Media
a. Reach, frequency, and impact
• Total number of
exposures (E)
– Gross Rating Points
(GRP): E = R X F
• Weighted number of
exposures (WE)
– WE = R X F X I
08/11/2020 BA MBA ZC411
4. Choosing Media
b. Choosing among major media types
08/11/2020 BA MBA ZC411

4. Choosing Media
• Place advertising options
Billboards
Public spaces
Product placement
Point of Purchase
08/11/2020 BA MBA ZC411
4. Choosing Media
c. Selecting specific media vehicles
– Media planner must choose most cost-
effective vehicles and must estimate audience
size, composition, media cost, and cost per
thousand persons reached
08/11/2020 BA MBA ZC411

4. Choosing Media
d. Selecting media timing and allocation
Continuity
Concentrated
Flighting
Pulsing
08/11/2020 BA MBA ZC411

5. Evaluating Advertising
Effectiveness
• Communication-effect research
• Sales-effect research
08/11/2020 BA MBA ZC411

Sales Promotion
• A collection of incentive tools, mostly short
term, designed to stimulate quicker or greater
purchase of particular products or services by
consumers or the trade
08/11/2020 BA MBA ZC411

Major Decisions
• Establishing objectives
• Selecting the tools
• Developing the program
• Implementing and Evaluating the
program
08/11/2020 BA MBA ZC411

1. Establishing objectives
– For consumers, retailers, and the sales force
08/11/2020 BA MBA ZC411

2. Selecting the tools
• Selecting consumer promotion tools
08/11/2020 BA MBA ZC411

• Selecting trade promotion tools
08/11/2020 BA MBA ZC411

• Selecting business and sales force promotion
tools
08/11/2020 BA MBA ZC411

3. Developing the Program
Incentive size Conditions
Total sales
promotion Duration
budget
Distribution
Timing
vehicle
08/11/2020 BA MBA ZC411

4. Implementing and Evaluating
the Program
 Lead time
 Sell-in time
 Sales data
 Consumer surveys
 Experiments
08/11/2020 BA MBA ZC411

Nivea
• How can company grow and sustain the brand
Nivea?
• How important is legacy in Nivea brand story?
7/11/2020 BA MBA ZC411

08/11/2020 BA MBA ZC411
Managing Personal Communications:
Direct Marketing and Personal Selling

BITS Pilani
Pilani Campus

Lecture No. 16
Learning Objectives
1. How can companies conduct direct marketing for
competitive advantage?
2. What are the types of sales representatives?
3. How can salespeople improve their selling skills?
21/11/2020 BA MBA ZC411

Direct Marketing
• The use of consumer-direct (CD) channels to
reach and deliver goods and services to
customers without using marketing
middlemen
21/11/2020 BA MBA ZC411

Direct Marketing
Direct mail
Catalog marketing
Telemarketing
Other direct-response marketing
21/11/2020 BA MBA ZC411

Constructing a
Direct-mail Campaign
 Choose objectives
 Choose target markets and prospects
 Choose offer elements
 Test elements
 Measure success
21/11/2020 BA MBA ZC411

Types of sales representatives
Deliverer Order taker
Solution vendor Missionary
Demand creator Technician
21/11/2020 BA MBA ZC411

Principles of
Personal Selling
• SPIN method types of questions
Situation
Problem
Implication
Need-payoff
21/11/2020 BA MBA ZC411
Six Steps in
Effective Selling
Prospecting &
Preapproach
qualifying
Follow-up & Presentation &

maintenance demonstration
Overcoming
Closing
objections
21/11/2020 BA MBA ZC411

Mahindra & Mahindra
• Analyze the segments identified by Mahindra
for Utility Vehicles? What was the basis of this
segmentation?
• Can you identify any other variable for
segmentation which M&M could have used?
• What were the considerations in choosing
‘Comfort’ segment for Xylo?
• If the company plans to launch another brand
which segment they should be looking at?
21/11/2020 BA MBA ZC411
21/11/2020 BA MBA ZC411
Review Session

BITS Pilani
Pilani Campus

Lecture No. 17
Our Journey so far…
Lecture Chapter Title Date

1 1 Defining Marketing for the New Realities Aug 08
2 2 Developing Marketing Strategies & Plans Aug 16
3 4&5 Forecasting Demand & Market Research Aug 23
4 6&7 Analyzing Consumer and Business Markets Aug 29
5 9 Identifying Market Segments and Targets Sep 05
6 10 Brand Positioning Sep 06
7 12 Addressing Competition and Driving Growth Sep 12
8 Review Session Sep 13
Our Journey so far…
Lecture Chapter Title Date
9 13 Setting Product Strategy Sep 19
10 14 Designing and Managing Services Sep 20
11 16 Developing Pricing strategies & programs Oct 21

12 21 Designing & Managing I M Channels Oct 23
13 22 Managing Retailing & Wholesaling Oct 24
14 17 Designing & Managing I M Communications Nov 7

15 18 Advertising and Sales Promotions Nov 8
16 20 Direct Marketing and Personal Selling Nov 21
17 Review Session Nov 22

Cases Discussed
Lecture Title Date
1 Nike Aug 08
3 Dove Aug 23
5 HSBC Sep 05
6 Nespresso Sep 06
14 Kellogg’s Nov 7
15 Nivea Nov 8
16 Mahindra and Mahindra Nov 21
17 Fevicol Nov 22
Fevicol Case Study
1. How has the brand developed resonance with its
customers?
2. What steps did Fevicol take to build their brand equity?
3. Analyze the customer-centric strategy adopted by the
organization.
4. What marketing strategies can Fevicol adopt against
competition?
5. Analyze the marketing communication mix adopted by
Fevicol.
22/11/2020 BA MBA ZC411


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Defining Marketing for the

BA ZC411 / MBA ZC411 – MARKETING

8/8/2020 BA MBA ZC411

• Successful marketing builds demand for products

• Marketing builds strong brands and a loyal customer

Copyright © 2016 Pearson

• AMA’s formal definition: Marketing is the activity, set

Copyright © 2016 Pearson

Copyright © 2016 Pearson

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• A marketer is someone who seeks a

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• Wants: specific objects that might satisfy the

• Demands: wants for specific products backed

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• Offerings: a combination of products,

• Brands: an offering from a known source

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• Owned media: a company or brand brochure,

• Earned media: word of mouth, buzz, or viral

• Engagement: the extent of a customer’s

Copyright © 2016 Pearson

• Satisfaction: a person’s judgment of a

Copyright © 2016 Pearson

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• Marketing in the organization

Copyright © 2016 Pearson

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8/8/2020 BA MBA ZC411 Copyright © 2016 Pearson Education

8/8/2020 BA MBA ZC411 Copyright © 2016 Pearson Education

BA ZC411 / MBA ZC411 – MARKETING

16/8/2020 BA MBA ZC411

• The value chain

• The central role of strategic planning

16/8/2020 BA MBA ZC411

CHOOSING THE VALUE

PROVIDING THE VALUE

COMMUNICATING THE VALUE

16/8/2020 BA MBA ZC411

– Every firm is a synthesis of activities

16/8/2020 BA MBA ZC411

16/8/2020 BA MBA ZC411

• Assessing the market’s growth rate and the

16/8/2020 BA MBA ZC411

16/8/2020 BA MBA ZC411

16/8/2020 BA MBA ZC411