Marketing - 1

A Wrap up

What is Marketing?
Marketing is finding out the consumers need gap and delivering value in a commercially viable manner. Marketing therefore becomes an attitude, a state of mind and a philosophy which guides the operations of a business. .

How do I prepare for my Finals?

Kotler Chs 1,2,3,6,7,8,9, 10 ( Pages 249-255), 11,12,13,17, 18 ( pages 485 497), 20. Class PPTs Understand concepts

Session No

Topic

Reading / Case

Decision Areas in Marketing Breakthrough Marketing Customer Analysis Consumer Behavior Organizational Behavior Financials of Marketing Segmentation and Targets Service Marketing Dealing with competition Competitive strategies

2 3

10

Class Activity Chapter 1 Case : Marks & Spencers Marks & Spencers update Chapter 5 Group Assignment Chapter 6 Case : Kinko Chapter 7 Case : London Olympics Reading Material Case : Titan watches Chapter 8 Case : Tata Sky Chapter 13 Case : Kodak versus Fuji Chapter 9 Case : Kodak versus Fuji contd. Chapter 9
Group Assignment

11

Assessing the Environment

13 14 15 16 17 18 19 20

Rural Marketing Product Management Brand Equity Advertising Management IMC Group Presentations Group Presentations Final Exam Wrap Up

Case : Lifebuoy Reading Material Lifebuoy contd Chapter 12 Case : Fair & Lovely Chapter 10 Fair & Lovely contd Chapter 18 Case : Toyota Innova Chapter 17

Chs 1.5,6.7,8,9,10,12,17,18

Product Quality Features Options Style Brand name Packaging Sizes Services Warranties Returns

Place Channels Retail Coverage Locations Inventory Transport

Price List price Discount

Promotion Advertising Personal Selling Allowances PR Credit Sales Pro Terms & Direct Conditions Marketing

Marketing Mix and the Customer

Four Ps Product Price Place Promotion

Four Cs Customer solution Customer cost Convenience Communication

Categories of Marketing Alliances

Product or Service Alliances Promotional Alliances Logistics Alliances Pricing collaborations

Final Exam
Will entail all concepts of marketing. No direct questions. Only applications.

How do you approach a case?

Marketing decision making : How to strategize on the problem identified? Give alternatives that are strategic in nature. What are the consequences of each decision? Reasons for recommendation

How do you analyze a case?

What are the rules of the game? Paradigm shift? Understand the competition/ consumer Understand the nature of the product. ( What level of product and therefore what is the requirement ) Understand the environment and the constraints. Evaluate the communications. What are the execution issues.

How do we identity needs, wants , desires and market to diverse and large crowds : 4 Ps Mktg Envn.

Societal Forces

STP
Brands & Benefits

Customer Satisfaction

Markets: Channels Supply Chain Competition Internal Marketing: Relationship Marketing; Integrated Marketing

Consumer Capabilities

Company Capabilities

Marketing orientation
Creating paradigm shifts Creation of concepts create a future Up gradation of products / services with value additions Extending life cycles of products Consumer choices with more competition Holistic marketing

What Influences Consumer Behavior?

Cultural Factors

Social Factors

Personal Factors

Copyright 2009 Dorling Kindersley (India) Pvt. Ltd.

Key Psychological Processes

Motivation

Perception

Learning

Memory

Copyright 2009 Dorling Kindersley (India) Pvt. Ltd.

Motivation
Maslows Hierarchy of Needs Behavior is driven by the lowest, unmet need Herzbergs Two-Factor Theory Behavior is guided by motivating and hygiene factors

Freuds Theory Behavior is guided by subconscious motivations

Copyright 2009 Dorling Kindersley (India) Pvt. Ltd.

Bases for Segmentation

Product Related Ie benefits, usage & loyalty

Psychographic Life style

Geographic

Psychological Needs, Personality, Perception, Learning, Attitude, Motivation Demographic Sex, Age, Income, Education, Occupation, Marital status Socio-cultural religion, Social class, family, Race, community

Approaches to Segmenting Business-to-Business Markets

1. 2. 3. 4. Demographics Customer type End-use application Purchasing situation

Market Targeting
Specifying segments to pursue
Organization Differentiated Marketing The organization pursues several different market segments simultaneously

Market

4-19

Market Targeting
Specifying segments to pursue
Organization Concentrated Marketing The organization focuses on a single market segment

Market

4-20

The environment
Macro Political Micro Economic

Customers

Competitors

Internal Employees Equipment Finance Departments

Suppliers

Shareholders

Other Stake holders

Technological

Social

Michael Porters Five Forces of Competition

New Entrants

Threat of new entrants

Industry Competitiveness Suppliers Buyers

Bargaining power of buyers

Intensity of Rivalry

Bargaining power of buyers

Threat of substitutes
Substitute products

Differential Advantage
Cost leadership Differentiation Focus

Analyzing Competitors
Step 2 - Five Variables to Monitor When Analyzing Competitors:
Share of market Share of mind Share of heart Share of Voice Share of Shop

Competitive Strategies
Market Leader: Innovation, Fortification, Confrontation, Harrasment. Challenger Strategy: price discount, cheap pricing, mini size,service, cost, advertising. Follower Strategy : Nicher Strategy

Product Decisions
Existing product position Improved products New products Extended market base Expansion of customer base New products and extended customer base Improved market and customer base Entirely new product for new marketsdiversification

Classification of Consumer Products

Exhibit 5-8 See Page 164

Product Life Cycle

Sa les

Introduction

Growth

Maturity

Decline

Marketing Objectives

Wean product in market

Maximize ma rke t share early

Fight for ma rke t share

Time

Minimize effort a nd t ime to m aintain ma rke t

Irwin/McGraw-Hill Slide 28

The McGraw-Hill Companies, Inc. Companies, 1999

Marketing Strategies for PLC

INTRODUCTION GROWTH MATURITY DECLINE

Product Strategy

Limited models Frequent changes

More models Frequent changes.

Large number Eliminate of models. unprofitable models

Place strategy
Phase out promotion

Promotion Strategy Pricing Strategy

Awareness. Aggressive ads. Advertise. Stimulate Stimulate Promote heavily demand.Sampling demand

Ansoffs Matrix
Products -> Markets Existing Existing New

Market Penetration ( Increase MS) Market Development

Product development Diversification

New

Categories of Adopters
Percentage of Adopters

Innovators 2.5%

Early Adopters 13.5%

Early Majority 34%

Late Majority 34%

Laggards 16%

Time

Product Management
Kotlers 5 levels or customer value hierarchy Product lines Product mix Product width PLC Adoption of new products

Five Levels of Meaning for a Product

y The core benefit level is the fundamental need or want that consumers satisfy by consuming the product or service. y The generic product level is a basic version of the product containing only those attributes or characteristics absolutely necessary for its functioning but with no distinguishing features. This is basically a stripped-down, no-frills version of the product that adequately performs the product function. y The expected product level is a set of attributes or characteristics that buyers normally expect and agree to when they purchase a product. y The augmented product level includes additional product attributes, benefits, or related services that distinguish the product from competitors. y The potential product level includes all the augmentations and transformations that a product might ultimately undergo in the future.
1.32

 A brand is therefore more than a product, as it can have dimensions that differentiate it in some way from other products designed to satisfy the same need.

Product Mix
The assortment of product lines and individual product offerings that the company sells. The right blend of product lines and products allows a firm to maximize sales opportunities. Product mix Width-the number of product lines offered. Product mix Length-the number of different products a firm sells. Product mix Depth-variations in each product that a firm markets in its mix.Eg Reach toothpaste, toothbrush, floss etc..

Integrative Growth
Backward integration taking control of supply system Forward integration distribution and retail Horizontal integration mergers and acquisitions.

Developing a communication program

Market structure and players Physical attributes & consumer benefits How to position within a targeted segment. Value proposition & differentiation Communication objectives Communication concept Phases in communication IMC

Figure 18.1 The Five Ms of Advertising

Copyright 2009 Dorling Kindersley (India) Pvt. Ltd.

Deciding the Advertising Objectives

 As a business task, advertising has to be objective-bound  AIDA, the four-stage model

Attention, Interest, Desire, Action They suggest that purchase process involves several stages and effects, one effect leading to another

Advertising Objectives can be Set Around Four Broad Themes

    The behavioural constructs- generating trials and store visits Attitude- attitude change and attitude measurement Awareness- creating awareness of new products/ brands/ ideas Product positioning and brand building

Macmillan Publishers India Ltd.

Chapter 36 / Slide 38

IMC
Common Communication Platforms
Advertising Print and broadcast ads Packagingouter Packaging inserts Motion pictures Sales Promotion Public Relations Personal Selling Sales presentation Direct Marketing Catalogs Contests, Press kits games, sweepstakes, lotteries Premiums and gifts Sampling Speeches

Sales meetings Incentive programs Samples

Mailings

Seminars

Telemarketin g Electronic shopping

Fairs and trade shows

Annual reports