Академический Документы
Профессиональный Документы
Культура Документы
MBA II Semester
Liberalized Economy
Assumptions:
Assumption:
Consumers will favour those products that offer the most quality, performance or innovative
features .
Selling Concept:
Companies not only produce the product but also try to convince
customers to buy them.
Assumptions:
If consumers are left alone they will ordinarily not buy enough
of Organization's products. and
Assumption:
Key to achieve its organisational goals consists of a company being more effective than
competitors.
Involves:
• Customer Orientation.
Focus:
• Customer is important.
Sales:
Advertising:
Quality
(Product, Features, Ingredients, Service Components)
Value
Price Service
(Low, Competitive) (After Sales, Embedded, Extra Efforts
Customers Reflects in the perceived tangible and intangible
benefits offered by the product and its cost to
the customers.
Self
Actualisation
Esteem
Social
McDonald’s Canteen
Physiological
Peter England Local Brand
2. Design a customer driven marketing strategy with the goal of acquiring, retaining and
growing target customers.
(Differentiation and Positioning; Marketing Mix)
•
Tools of Marketing Mix
McCarthy classified the marketing mix tools into four broad categories; 4 Ps of Marketing
3 Additional Tools:
Functions of Research:
Marketing Research
Functions of Exchange:
Selling
Standardization, Branding
Packaging
Salesmanship
Advertising
Pricing
Financing
Insurance
Company Orientations and Philosophy
towards market place
Assumptions:
Assumption:
Consumers will favour those products that offer the most quality, performance or innovative
features .
Selling Concept:
Companies not only produce the product but also try to convince
customers to buy them.
Assumptions:
If consumers are left alone they will ordinarily not buy enough
of Organization's products. and
Assumption:
Key to achieve its organisational goals consists of a company being more effective than
competitors.
Involves:
• Customer Orientation.
Focus:
• Customer is important.
Marketing Environment
External Internal
- Company Image
- Location
Macro Micro - R&D Capability
• Economic Conditions - Customers -Financial Capability
• Political and Legal
• Demographic - Intermediaries -Human Resource
• Competition - Suppliers -Production Facilities
• Technology
Economic Conditions:
• Business Cycle
• Purchasing Power of Customers
• Inflation
• Interest Rates
Business Cycle
Recession
Recovery
Prosperity Depression
Legal and Governmental Factors:
• Political Leadership
• Stability of Government
• A Premium on Time:
• Paucity of time
• Attitude towards gaining more free time
• Convenience
Competitive
Environment
• Customers:
- Needs
- Purchasing power
- Buying Behaviour
• Suppliers:
- Raw Materials / Finished Goods
- Cooperative Relationships
• Intermediaries:
- Value Creation; facilitating organisations
- Channels of distribution
Analysing Internal Environment:
• Company Image;
• Location;
• Production Facility;
• R & D Capability;
• Financial Resource;
• Human Resource;
Developing Marketing Strategies
• Potential Market;
• Assumptions;
1. People have similar characteristics and wants for a product category.
3. People do have different characteristics and wants but it is not worth to develop
separate marketing mix.
• The elements of the marketing mix do not change for
different consumers, all elements are developed for all
consumers.
1 Pricing strategy
1 Promotional program aimed at everybody
1 Type of product with little/no variation
1 Distribution system aimed at entire market
• Measurable;
• Accessible;
• Substantial;
• Actionable;
• Differentiable;
• Homogeneous Demand- uniform, everyone demands the product for the same
reason
Concentration Strategy:
Segment A
Marketing Segment B
Mix
Segment C
Segment D
Multi-segment strategy
Marketing
Mix A Segment A
Marketing Segment B
Mix B
Segment C
Marketing
Mix D Segment D
Bases for segmenting Markets.
Alternative Strategies
Narrow Coverage
Broad Coverage
Differentiated Marketing
Micro Marketing
Undifferentiated Marketing
Single Segment Concentration / Concentrated Strategy:
M1 M2 M3 M4
P1
P2
P3
Selective Specialisation Strategy / Differentiated Strategy:
• Multiple segments catered.
• Different Marketing Mix to different segments.
• Product itself may or may not be different.
• Some of the Marketing Mix Tools may vary.
M1 M2 M3 M4
P1
P2
P3
Product Specialisation:
M1 M2 M3 M4
P1
P2
P3
Market Specialisation:
M1 M2 M3 M4
P1
P2
P3
Full Market Coverage:
M1 M2 M3 M4
P1
P2
P3
Benefits of Segmentation
d. Image;
More
Benefits
Marginal
Same Loosing Proposition
Proposition
Loosing Loosing
Less Proposition Proposition
Price
4. Developing a Positioning Statement
Reflected in;
Need Recognition:
Target Segment:
Solution:
Concept:
Differentiation:
5. Communicating and delivering the chosen position
More
QUALITY COMPETITIVE VALUE
Same
Less
• Single Benefit Positioning: rare to find in intense
competition
Why Repositioning ?
Repositioning refers to the major change in positioning for the brand/product.
Tanishque
• It is important to know :
Customer’s
Disposition
to Buy
Culture: People’s shared customs, beliefs, values that are generated from generation to
generation.
Sub-culture: smaller groups within cultural framework with common life experiences and
situations.
Reference Groups: Small Social Groups to which an individual belongs or aspires to belong.
• Aspirational Groups
• Dissociative Groups
Opinion Leaders;
Family : Persons related by blood, marriage or adoption who
reside together.
• Consumption Roles:
• Influencers;
• Deciders;
• Buyers;
• Users;
• Maintainers;
1. Bachelor Stage
2. Newly Married Couples
3. Full Nest I
4. Full Nest II
5. Full Nest III
6. Empty Nest I
7. Empty Nest II
8. Solitary Survivor
• At each stage of Family Life Cycle a person behaves differently; consumption patterns are
also shaped up accordingly.
Roles and Status: A person enters and exists different roles and status throughout the life.
Brand Personality:
Some consumers resist prune (dried plum) because prunes are wrinkled looking and remind
of old age.
Maslow’s Theory: People satisfy their most important needs first. The needs are placed in a
hierarchical order.
Herzberg’s Two Factor Theory: Satisfiers and Dissatisfiers.
1. Selective Attention
2. Selective Distortion
3. Selective Retention
Learning: involves changes in an individual’s behavior arising
from experience.
Information Search
Personal, Commercial,
Trying to determine what's available. Experimental
Evaluation
Eliminating products/services/companies
and deciding who's best.
Purchase
Actually buying your product/service
P
R Psychological Field
O Need Recognition Motivation
C Perception
E Pre Purchase Search Learning, Personality
S
S Evaluation of Alternatives
Experiences
Purchase
Trial
Repeat Purchase
OUTPUT
Post Purchase Evaluation
Steps Between Evaluation and Purchase Decision
Evaluation of
Alternatives
Purchase Intention
Evaluation of
Alternatives
DECISION MAKING SET
TOTAL SET CONSIDERATION CHOICE SET
SET
DECISION
Purchase sub-decisions:
• Brand Decision
• Vendor Decision
• Quantity Decision
• Timing Decision
• Payment Methods
Types of Buying Behaviours
Involvement
Nature of Products
• Non-Prospects
Types of Buying Behaviours
Significant Differences
Between Brands Complex Buying Variety Seeking
Behaviour Buying
Behaviour
Dissonance
Few Differences
Reducing Habitual Buying
Between Brands Buying Behaviour
Behaviour
Complex Buying Behaviour: Significant Differences, High Involvement - Highly self expressive
products, Lengthy Learning Process, infrequent purchases
Dissonance Reducing Buying Behaviour: Few differences, High Involvement - anxiety or conflict
of pre or post purchase decision.
Habitual Buying Behaviour: Few Differences, Low Involvement - frequently purchased, Brand
familiarity, no strong attitude towards a brand.
Variety Seeking Buying Behaviour: Significant Differences, Low - Involvement frequent brand
switching, breaking the monotony.
Factors Likely to Increase Pre-Purchase Search
Product Factors:
• Long inter-purchase time
• Frequent changes in product styling
• Frequent price changes
• Volume Purchase
• High Price
• Many Alternatives
• Much Variation in features
Situational Factors:
• First Time Purchase
• No Past Experience
• Unsatisfactory past experience
• Purchase for gift
• Product is socially visible
• Many sources of conflicting information
Business Buying Behaviour
Business/ Industrial Buying Behaviour
• Business market consist of all individuals and organisations
that buy goods and services for one or more purposes;
Metal Eyelets
Shoelaces
Packaging
Shoe Manufacturer
Wholesaler / Distributor
Retailer
End Consumer
Nature of Business Market
2. Intermediary Market; buying from suppliers and reselling these essentially in the same
form.
• Resellers create time, place, and information utilities.
• Retailers are also business buyers.
• Team of Purchasers and Merchandisers
3. Government Market: Buying is based on competitive bidding
• Protection for certain sections of entrepreneurs
1. Number of Buyers
4. Number of Intermediaries
Business Buying Decision Process
Product Specification
Supplier Search
Proposal Solicitation
Supplier Selection
Order Specification
Performance Review
• New Task Buying:
• Straight Re-buy:
• Routine
• Low-involvement
• Minimal Information Required
• No consideration for Alternatives
• Modified Re-buy:
• Average involvement of time and people.
Buying Roles
• Environmental Factors;
• Organisational Factors;
• Interpersonal Factors
• Individual Factors
Product
Product
A product is anything that might satisfy a want or need,
whether it is a
Business or Organization
Combination
Experience
The Good/Service Continuum
CONSUMER PRODUCTS
INDUSTRIAL PRODUCTS
• Bought Frequently
• Low Priced
• Includes:
Staple goods
Impulse Goods
Emergency Goods
Shopping Products
• Compare for
» Suitability
» Quality
» Price and
» Style
Specialty Products
• Unique Characteristics
• Brand Identification
• New Innovations
• Raw Material
• Manufacture Material
• Parts
• Installations
• Operating Supplies
• Repair and maintenance items
Organizations, Places and Ideas
Space Selling
Event Marketing
Social Advertising
Concept Selling
Destination Selling
Developing a Product or Service Involves Defining
The benefits it will offer:
•Product Attributes: what makes it distinct from other products. Attributes include things
like size, color, flavor, package type and other features that are relevant to the category.
• Branding:
• The group of related company products that are similar in their target markets, pricing, and
distribution channels
• Decisions Involve:
Product Mix Length: Total number of items a company carries within its product line.
Functions:
Contain
Safety ……………………….
Primary Container
Secondary
Container
Shipping Package
Main purposes to packaging:
• Utilitarian
• Implement Strategy
• To Increase Profit
• Packaging Concept
Branding ???
Branding Strategy: Building Strong Brands
Individual Brands: •Separate brand names are used For different items
by a single company
•Attract various segments.
•These brands have distinct images and appeals and
marketed differently
Family / Blanket •One brand name is used for two or more individual
Brands : products.
•Family branding is more effective for specialised
companies
• Positive fall out on other products.
Generic Brands : •Buyers refer the type of product they want by
producers’ brand name.
•Dangerous for the company.
Private Labels: •Retailers are creating their own brands.
INDIVIDUAL BRANDS
Quality Ayurvedic and nature-based Health care, Personal Care, Food Products
Personal Care: Amla Hair Oil, Vatika hair oil, Vatika Face Pack,
Dabur Lal Toothpaste and Dant Manjan, Babool, Meswak.
PRIVATE LABELS
Existing New
Line Brand
Existing Extension Extension
Brand
Multi New
New
Brands Brands
Product Categories
Line Extension: introducing additional items in a given product category under same brand
name.
Brand Extension: using successful brand name to introduce new or modified products in a
new category.
1. Instant Recognition
2. Saves costs
Multi Brands: introducing new brands or additional brands in the same category.
2. Each brand may obtain only a small market share none may be very
profitable
New Brands: Company may create a new brand in a new product category.