Marketing for Managers

Contents

Marketing an Its Applications Marketing planning and Organisation Understanding Consumers Product Management Pricing an Promotion Strategy Distribution and Public Policy

Block 1 Marketing and its Applications

Chapter 1
Introduction to Marketing

The Meaning of Marketing

Marketing is the performance of business activities that directs the flow of goods and services from producer to consumer or user
PRODUCER
Product

CONSUMER Need

Marketing activities

The Marketing Mix

Product C

Promotion

Price

Place

Marketing Strategy
Needed to create and retain a satisfied customers

Strategies STDP Strategies Marketing Mix Strategies

STPD Strategies

Segmentation

Aggregating process A cluster of people with similar needs. A Homogeneous group of customer who will respond to a marketing mix in a similar way. Once the market segment is defined, it has to decide how many and which one to target.

Targeting

Differentiation

Product Differentiation Service Differentiation Channel Differentiation Personnel differentiation

Positioning

Its a perception about your offering in the minds of the consumer.

Product Mix Strategies

What is Product Mix

Set of all products offered by an organisation to its customers Width Length Depth Consistency

Consists of

Case Study
Product-Mix Width and Product-Line Length for PepsiCo India Product-Mix Width Beverages Pepsi Mountain Dew Aquafina Mirinda 7-Up Dukes Soda Dukes Mangola Slice Juice Tropicana Orange Nature Sweet Apple Grape Pineapple Tomato Mixed Fruit Snacks Lays Cheetos Lehar Numkeens Nutyumz Kurkure

Product-line Length

Strategy of Product Mix

Expansion of product mix Contraction of product mix Altering existing products Positioning the product

Place
Is concerned with all the decisions involved in the getting right product to the target markets place.

Distribution Channels

any series of firms that participate in the flow of products from producer to its final consumers.
Manufactures or producer
Toyota Raymond's Wholesaler Nestle Wholesaler Wholesaler Retailer Retailer

Retailer

Consumer

Promotion Mix Strategy

Push Strategy directing communications to channel members Pull Strategy directing communications to end users Factors type of product/market buyer readiness stage product life-cycle stage

Chapter 2
Marketing in a Developing Economy

Marketing functions performed at different levels of development

Relevance of Marketing in a developing economy

Marketing and planned economic growth How to view the marketing effort Significance of macro and micro marketing General role of marketing

Stimulates potential aggregate demand and thus enlarge the size of the market It helps in the discover of entrepreneurial talent

Areas of Relevance

Marketing in agriculture, basic industries, mining and plantation Intermediate industrial goods Semi-industrial products Export trade & services like tourism and banking

The Relevance of Social Marketing

4 Ps Social Marketing planning system

Chapter 3 Marketing of services

The service sector

The services sector has been growing at a rate of 8% per annum in recent years More than half of our GDP is accounted for from the services sector This sector dominates with the best jobs, best talent and best incomes

service industries.There are only industries whose service components are greater or less than those of other industries. Everybody is in service.
-Theodore Levitt-

There are no such thing as

What is services?
It is the part of the product or the full product for which the customer is willing to see value and pay for it.

Growing Importance of Services

Economic well being increases the demand of services Changing lifestyle Complexity of the product

Characteristics of Services

Intangibility Perishability Inseparability Variability Client relationships Right of owner-ship

Intangibility

Hard to grasp, concept is abstract

Dramatization often necessary for concept Hard to separate the service provider and the service

Perishability

Services cannot be stored or held in inventory. If not used when available, they go to waste.

Inseparability

Outlet accessibility can limit the area covered by the service.

Image is important: Image affects the perception of the service.

Variability

Service quality tends to vary considerably.

Haircut from your hair dresser vs. Javed Habib

Client Relationships

Relationships between service organizations and customers are often close Potential for loyalty longterm

Right of owner-ship

It is not taken to the service, we merely experience it. e.g. Services of a doctor, lawyer, teacher, mechanic, etc..

Difference between physical goods and services

Physical goods tangible homogeneous Production and distribution are separated from consumption Services intangible heterogeneous Production, distribution and consumption are simultaneous processes

A thing
Core value processed in factory Customers do not participate in the production process Can be kept in stock Transfer of ownership

An activity or process
Core value produced in the buyerseller interaction Customers participate in production Cannot be kept in stock No transfer of ownership

SERVICES MARKETING MIX

Product Place Prize Promotion People Physical Evidence Process

In services, the last experience remains uppermost in your mind. Therefore, it is not enough to be good, you have to be consistently good

Service quality is directly proportional to employee satisfaction

Block 2
Marketing Planning and Organisation

Chapter 4
Planning Marketing Mix

The Elements of Marketing Mix

Product activities

Pricing activities

Quality, features, style, brand name, packaging, sizes, services, warranties, returns
Target customers, cost, competition, the law, social responsibility Advertising, personal selling, sales promotion, publicity and public relations Physical distribution

Promotional activities

Place or Distribution related activities

Channels of distribution

Transportation, warehosuing and storage, Order processing, Inventory control, Location

The Place of the Marketing Mix in Marketing planning

Current Marketing Situation Identification of Problems and Opportunities Defining Objectives Designing the Marketing Strategy Developing the marketing programme

The Relationship between Marketing Mix and Marketing Strategy The concept of Optimum Marketing Mix

Marketing Mix and some specific Situation

New product development and marketing mix Product life cycle and marketing mix Role of Advertising in marketing mix Role of price in marketing mix

The Product Life Cycle

Chapter 5
Market Segmentation

The Concept of Market

In respect of the network of institutions like wholesalers and brokers dealing in a product To refer to the nature of demand for the product, as when we speak of the market for soap

The concept of segmentation

Relationship of a segment to a market

Market Segmentation versus product development Benefits and doubts about segmentation What is grouped in forming segments

What, how, where, when, why, who

Bases for Segmentation

Geographic
Region, City or Metro Size, Density, Climate

Demographic
Age, Gender, Family size and Life cycle, Race, Occupation, or Income ...

Psychographic
Lifestyle or Personality

Behavioral
Occasions, Benefits, Uses, or Attitudes

Segmenting Business MarketsContd.

Personal Characteristics

Demographics

Situational Factors

Bases for Segmenting Business Markets

Operating Characteristics

Purchasing Approaches

How is the basis for segmentation selected?

Methods that companies use Logical division Perceptual mapping technique Considerations in using perceptual maps

Selection of Segments

General factors

Company trust Size & growth potential Investment needed Profitability Risk Competition
Segment durability Mobility Visibility accessibility

Specific Segmentation factors

Chapter 6
Marketing Organisation

Principles of Designing an Organisation

Specialisation Departmentalisation Standardisation Formalisation Centralisation Evaluation Structure

Marketing Organisation

The changing role of Marketing Organisation

Simple sales department Sales department with some marketing function Separate marketing department Integrated marketing department Marketing oriented organisation

Considerations involved in designing the marketing organisation

Statement of objective and goals of the firm Nature of the product/Line of activity Areas of operation Nature of Industry Computerisation & up-gradation of information system External environment & Government intervention.

Marketing Organisation

Methods of designing the Marketing Organisation

Functional Organisation Product Management Organisation Market Centered Organisation

Organisation of Corporate Marketing

No corporate marketing support Minimal corporate marketing support moderate corporate marketing Strong corporate marketing

Chapter 7
Marketing Research & Its Applications

The Context of Marketing Decisions Definition of Marketing Research Purpose of Marketing Research Scope of Marketing Research Marketing Research Procedure

Marketing Research in India Problems of conducting marketing research

Problem Definition Research design Field Work Data Analysis Report presentation and implementation

Application of Marketing Research

Sales & Market Analysis

Determination of market potential Determination of market share Sales forecasting Design of market segmentation studies Target market Distribution channel studies Determination of market characteristics Determination of competitive information

Product Research

Evaluation of new product ideas Testing for new product acceptance Evaluating the need for change in product information Testing package design Testing of product positioning

Application of Marketing Research

Business Economics and corporate research

Studies of business trends Pricing studies Diversification studies Product mix studies Plant & warehouse location studies

Advertising Research

Audience Measurement Determining the most cost effective media plan Copy Testing Determining advertising effectiveness Consumer behaviour research

Block 3
Understanding Consumers

Chapter 8
Determinants of Consumer Behaviour

Importance of consumer behaviour for marketers Types of consumers Buyers v/s Users

Figure 16.2 A Simple Model of Consumer Decision Making

External Influences
Input Firms Marketing Efforts 1. Product 2. Promotion 3. Price 4. Channels of distribution Consumer Decision Making Need Recognition Process Prepurchase Search Evaluation of Alternatives Psychological Field 1. Motivation 2. Perception 3. Learning 4. Personality 5. Attitudes Experience Sociocultural Environment 1. Family 2. Informal sources 3. Other noncommercial sources 4. Social class 5. Subculture and culture

Postdecision Behavior
Output Purchase 1. Trial 2. Repeat purchase

Postpurchase Evaluation

Factors influencing consumer behaviour

External Environment
Individual Determinants
culture
Problem Recognition
Information search Purchasing decision

others

learning

perception

family personality

Postpurchase behaviour

subculture motivation

attitudes social group social class

Chapter 9
Models of Consumer Behaviour

What is a decision? Process of decision making

Involvement Alternative differentiation Time pressure

Types of Consumer Decision Making

What to buy How much to buy Where to buy When to buy How to buy

Levels of Consumer Decision Making

Buying Roles Buying Behaviour

Extensive problem solving Routinized buying behaviour Variety seeking behaviour

Stages in the Buyer Decision Process

Identify the problem recognition

Gather information about the product and brands

Evaluate the alternatives and select the best possible alternative

Purchase decision/ buying the product

Post purchase Evaluation

Post purchase use and disposal

Models of Buyer Behaviour

Horward-Seth Model

Engel-Kollat-Bloackwell Model

Inputs Perceptual & learning constructs Outputs Exogenous or external variable

Information processing Central control unit Decision process Environmental influences Influencers Gatekeepers Deciders Preparers Buyers users

Model of family decision making

Model of industrial buyer behaviour

Chapter 10
Indian Consumer Environment
Demographic Characteristics Income and consumption characteristics Characteristics of organisational consumers Geographic characteristics Market potential Socio cultural characteristics

Block 4
Product Management

Chapter 11 Product decision and strategies

Product
Anything that can be offered to a market to satisfy a want or need

Physical goods Services Experiences Events Persons Places Properties Organizations Information Ideas

Productbenefit Levels Marketer has to turn core

into basic product Bank accounts like savings account, current account

Encompasses all possible augmentation and transformations The the product might undergo in future fundamental service or product the customer is buying Anywhere banking, ATM sharing, CRM In a priority banking, portfolio management bank the customer is looking for security of his money

A product that exceeds customer expectations A set of attributes and conditions the buyers A bank can offer facilities like ATM/Debit expect when they buy the product cards, Telebanking, Internet Banking and The bank customer would expect a cheque book, also other financial services locker and other deposit products like FD, RD

Product Mix
Product mix has a certain

Width

Length
Depth Consistency

Case Study
Product-Mix Width and Product-Line Length for PepsiCo India Product-Mix Width Beverages Pepsi Mountain Dew Aquafina Mirinda 7-Up Dukes Soda Dukes Mangola Slice Juice Tropicana Orange Nature Sweet Apple Grape Pineapple Tomato Mixed Fruit Snacks Lays Cheetos Lehar Numkeens Nutyumz Kurkure

Product-line Length

Case Study
The Times Group

Print

Net

Entertainment

Retail

The Times Group contd..

Print

The Times Group contd..

Net

GROUP SITES

The Times Group contd..

Entertainment

The Times Group contd..

Retail

Product Line Decisions

B. Product line Length
a. Objectives b. Cycle

1. Line Stretching

a. Down market Stretch b. Up market Stretch c. Two way stretch

2. Line Filling

Just-noticeable difference

3. Line Modernization, Featuring and Pruning

Chapter 12

Product Life cycle and New Product Development

The Product Life Cycle Concept Marketing Mix at different stages

Strategy

Introduction

Growth

Maturity

Decline

1. Objective 2. Focus 3.Customer Targets 4.Competitor 5.Differentiated Advantage Marketing MIX 1. Product

Aggressive Entry Non- Users Innovators

Maximize Share New Segments Early Adopters Growing Number Brand Image Growth Extension & Enhancement Lower High Brand Performance Intensive

Boast Profits Defend Share Majority

Milk Products Cut Costs Laggards

Few Product Performance Introduction Basic

Many Price & Service Maturity Differentiation & Variety Lower Falling Loyalty Intensive

Declining Price Decline Rationalize Range Stabilizing Low Selective Rationalize

2. Price 3.Promotion 4. Advertisement Forms. 5.Distribution

High High Awareness Selective

New Product Development Strategy

Stages in new product development Ideas generation Screening of ideas Concept testing Product designing and evaluation Product testing Product launching

Chapter 13

Branding and packaging decison

Branding
Definition: A brand is a name, Term, Sign, Symbol, Brand or combination of them intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.
-American Marketing Association
Trademarks legal right to the exclusive use of that name or mark

Challenges in Branding and decisions

Branding to be or not to be.. Whether Produce Manufacturer Brands or Distributor / Private Brands

Which Brand Name/s to use

Whether to use Line extensions, Brand Extensions, Multi Brands, New Brands or Cobrands

Brand Name Features

A Brand name should

suggest something about the products benefits suggest the product or service category suggest concrete, high imagery qualities be easy to spell, pronounce, recognize, and remember be distinctive not carry poor meanings in other countries and languages

Packaging

What is packaging Packaging Industry

Used materials : Metals, plastics, wood, paper, glass, laminates, polysters, etc. Protection, Appeal Performance Offer convenience to the end-users Cost effective Statutory requirements

Functions of packaging

Legal dimensions of packaging

Net weight, when packed Date of manufacture Date of expiry Directions of storage MRP Directions for use

Block 5
Pricing and Promotion Strategies

Chapter 14
Pricing policies and practices

Price
Three variables that determine profit: Sales Volume

X Price - Cost = Profit

Benefit

Seller

Customer

Price

Determinants of Price

Demand Competition

Setting the Price

Pricing Strategies Price-Quality Strategies

Price
Higher Higher Premium Strategy (Mercedes,Evian) Overcharging Strategy (Cielo) Lower Good-Value Strategy (Amul) Economy Strategy (Akai,OK)

Lower

Quality

Corporate Pricing Objectives

Survival Low Prices to Cover Variable Costs and Some Fixed Costs to Stay in Business. Current Profit Maximization Choose the Price that Produces the Maximum Current Profit, Etc.

Market Share Leadership Low as Possible Prices to Become the Market Share Leader.
Product Quality Leadership High Prices to Cover Higher Performance Quality and R & D. Market Skimming Initially setting up High Prices to Skim the market

Selecting the Price Objective

Survival
(Mobile Operators)

Maximum current profit

(Aiwa)

Maximum market share

(Kodak KB)

(Nokia Handsets / Intel Micro Chips)

Maximum market skimming

Product-quality leadership
(Maruti)

Estimating Cost
Fixed Costs (Overhead) Costs that dont vary with sales or production levels. Executive Salaries Rent Variable Costs

Costs that do vary directly with the level of production.

Raw materials

Total Costs
Sum of the Fixed and Variable Costs for a Given Level of Production

Selecting a Pricing Method

Markup Pricing Target Return Pricing Perceived Value Pricing Value Pricing Going-Rate Pricing

Sealed-Bid Pricing

Pricing Methods

Markup price = unit cost (1-desired return on sales)

Where unit cost is variable cost + (fixed cost/unit sales)

Target return pricing (target ROI) = Unit cost + desired return X invested capital Unit sales Break even volume = fixed cost Price variable cost

Pricing Methods

Value-based Pricing

Pricing strategy reflects the beliefs and attitudes of the customer. Perceived price/quality relationship. Price is based on an understanding of the value of the product as perceived by the customer.

Value-Based Pricing
Cost-Based Pricing Value-Based Pricing

Product Cost Price Value Customers

START

Customer Value Price Cost Product

Pricing Methods
Going-Rate
Company Sets Prices Based On What Competitors Are Charging.

Sealed-Bid
Company Sets Prices Based On What They Think Competitors Will Charge.

Selecting the Final Price

Psychological pricing

Sometimes price is equated to quality

Reference Price

Influencing of other marketing-mix elements

The final price must be take in to account the brands quality and advertising relative to competition

Company pricing policies

The Price must be consistent with company pricing policies

Impact of price on other parties

such as dealers and distributors

Geographical Pricing
Adjusting prices to account for the Geographical Location of Customers
Marketing Management Philip Kotler US Price $124.67 India Price Rs. 310

Harry Potter J. K. Rowling

US Price $17.99 India Price Rs. 636

Discount & Allowance

Reducing Prices to Reward Customer Responses such as Paying Early or Promoting the Product.

Cash Discount Quantity Discount Functional Discount Seasonal Discount Trade-In Allowance Promotional Allowance

Promotional Pricing
Reducing Prices to Increase Short-Run Sales

Reducing Prices to Reward Customer Responses such as Paying Early or Promoting the Product.

Product mix
Product-Mix Pricing Tactics:
Product-line Pricing Two-Part Pricing

Optional-feature pricing Captive-product pricing

By-Product Pricing Product-Bundle Pricing

Product Mix Pricing Strategies

Optional-Product Pricing
Pricing Optional or Accessory Products Sold With The Main Product i.e. Car Options such as a CD player

Captive-Product Pricing

Product Mix Pricing Strategies

Pricing Products That Must Be Used Along With The Main Product e.g. Printer cartridges

By-Product Pricing
Pricing Low-Value By-Products To Get Rid of Them e.g. Sugarcane

Product-Bundle Pricing
Bundles Of Products Sold Together at a Reduced Price e.g. Gillete razor blades & foam

Product Line Pricing

Setting Price Steps Between Product Line Items

Analyzing Competitors Cost ,Prices and Offers

The company needs to benchmark its costs against its competitorscost to learn whether it is operating at a cost advantage or disadvantage. The company also needs to learn the price and quality of competitors offers

Assessing & Responding to Competitor Price Changes

Has Competitor Cut Price?
No

Hold Current Price; Continue to Monitor Competitors Price.

Yes

Will Lower Price Negatively Affect Our Market Share & Profits?

No

Reduce Price
Yes

Can/ Should Effective Action be Taken?

No

Raise Perceived Quality

Improve Quality & Increase Price Launch Low-Price Fighting Brand

Yes

Chapter 15
Marketing Communication

The Communication Process

Sender

Encoding

Message Media

Decoding

Receiver

Noise
Feedback

Response

Marketing Communication Mix

Sales Promotion Advertising

Marketing Communication
Public Relations

Direct Marketing

Personal Selling

The Promotion Mix

Direct Marketing

Public Relations Personal Selling

Special Offer

Sales Promotion

Advertising

Advertising
A paid nonpersonal communication about an organization and its products transmitted to a target audience through mass media

Mass Media

Newspapers TV Radio Magazines Billboards Eg : Johnson & Johnson

Sales Promotion
Consists of a diverse collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of particular products or services by consumers or the trade

Types of sales promotions

Coupon Point-of-Purchase Premium: free/ reduced-price Trade Show Contests & More

Britannia Khao World Cup Jao

Public Relations & Publicity

Promotional tool Identify, establish, and maintain beneficial relationships between a company and its stakeholders

Benefits
Corporate visibility Image Building Product Information

Patni Computers i-flex solutions

Personal Selling
Promotional tool in which a salesperson communicates one-on-one with potential customers

Advantages

Immediate response Tailored message Ability to measure effectiveness

Disadvantages

Relies on ability of sales rep. Expensive per contact

JCI Franco Indian Pharma

Direct Marketing & Others

Direct Communications with Carefully Targeted Individual Consumers to Obtain an Immediate Response
Face-to-Face Selling Direct-Mail Marketing

Online Marketing

Kiosk Marketing

Catalog Marketing

Direct-Response TV Marketing

Telemarketing

Tracmail Rohini International

Push & Pull Strategy

Push Policy

Promoting a product only to the next institution down the marketing channel Promoting a product directly to consumers to develop stronger consumer demand that pulls products through the marketing channel

Pull Policy

Determinants of promotion mix

Type of product
Target Audience Determinants Company Policy Budget Stage in the PLC Nature of market

Establish the Communication Budget

After Determining Its Objectives, the Marketer Must Set the Communications Budget for Each Product and Market. Affordable Percentage of Sales

Based on What the Company Can Afford

Based on a Certain Percentage of Current or Forecasted Sales

Objective-and-Task

Based on Determining Objectives & Tasks, Then Estimating Costs

Based on the Competitors Promotion Budget

Competitive-Parity

Factors in designing promotion mix strategies

Chapter 16
Advertising and Publicity

How advertising works? Types of advertising Role of advertising Advertising expenditure Advertising management Setting advertising objective Developing advtg. Copy and message Selecting and scheduling media Measuring advertising effectiveness Coordinating with ad agency Publicity

Use of publicity Measuring effectiveness of publicity

Chapter 17

Personal Selling and Sales Promotion

Personal Selling

Role of personal Selling Types of selling jobs

The selling process

Merchandise deliveries Inside order-taker Outside order-taker Missionary salesperson Sales engineer Tangible product seller Intangible product seller Preparation Prospecting Preapproach Approach Sales presentation Handling objectives Closing the sale Post-sale follow-up

What is sales promotion?

Sales promotion consists of a diverse collection of incentive tools, mostly short term, designed to stimulate quicker and or greater purchase of particular products/services by consumers or trade -Kotler

Below the line

What is sales promotion?

Non personal promotional effort that are designed to have immediate impact on sales Employed for a pre-determined limited period to increase consumer demand or stimulate market demand

What is sales promotion?

Sales promotion offers an incentive to buy Encompasses everything that is outside of advertising, PR and DM Uses advertising, PR and DM to deliver the sales promotion Can be planned to increase sales over a long period and not necessarily about immediate results (privilege / mileage points)

Why has SP grown so much?

Results ! - immediate / quick boost to sales Results over finite period of time - v/s advertising or PR Results are measurable Easy and inexpensive to implement Costs & efficiency of mass media / advertising has risen considerably

Product managers face pressure to increase sales Companies face more competition Consumers have become more deal oriented

Sales Promotions work!

How does SP work?

Consumer decision making process (except for

low cost, low involvement impulse pur.)

Awareness Information gathering Pre purchase evaluation decision PURCHASE Post purchase evaluation

Awareness Advt / PR Information gathering Pre purchase evaluation Per Sell Decision SP PURCHASE Post purchase evaluation

SP works because ...

It alters the price / value relationship that the product offers the buyer

Lowers price - use of coupons, discounts Add value - value packs, extra free

Everybody loves freebies Consumers have a reason to purchase the product NOW Justifies post purchase evaluation

Advantages

Sales promotions help shape buying patterns - Annual sales Attract new audiences - trials for new products Increase sales - freebies, buy 1 get 1 free Increases profits Helps move stock / liquidate inventory Increases awareness - reach new buyers

Advantages

Encourages the consumer to buy more than usual on a single shopping visit Reminder of product, especially when a new product / competitor is about to launch Improving TOM recall of the brand if promo is advertised in mass media Demoralise newly launched brands

Disadvantages

Can seem like last minute panic measures and that can signal failure Can give an impression of hard sell Greed for sales - promos are often not related to the strategic elements of the brands mktg. mix Often viewed as simple reactionary techniques to increase sales and profits Dilutes brand value - discount brands

Sales promotion techniques

Price deals Discounts Price pack deals Samples Rebates Sweepstakes/contests Frequency rewards Demos POP

Trade allowances Dealer loader Trade contests POP Displays Training programs Push money / Spiffs Exhibitions

Samsung pinning toh winning

All India promo Aggressive use of mass media Consumer gets an assured gift on purchase of any Samsung product 100 cr worth of prizes on offer Sms 16 digit pin and the gift u get wl b smsd 2 u.
Cash in on Diwali purchases

Phod ke dekho offer

Consumer promotion scheme Packaged as a coconut which cons picks on purchase of a Samsung product Breaking the coconut reveals a chance to win a gift Strong consumer acceptance helped co to achieve a growth of 35% in sales over last year - same period

Test drive and win

Tata Motors celebrated 50 years Offer to test drive any Tata car - fill a form - and lucky winners could win Prize Indica V2 Petrol Buzz / Hype / Awareness Mass media - TV / Press / DM Helped build / gather data base
Buzz around Petrol

Some historic cases

Developing a Sales Promotion and Merchandising Plan

Set sales promotion and merchandising objectives. What is your target audience? Establish a tentative sales promotion and merchandising budget. Select sales promotion and merchandising techniques.

Developing a Sales Promotion and Merchandising Plan

Select media for distributing promotions. Decide on timing of sales promotions and merchandising. Pretest sales promotions and merchandising. Prepare final sales promotion and merchandising plan and budget. Measure and evaluate sales promotion and merchandising success.

10 commandments of sales promos

Coordinate with mktg

Know when to break

Specific objectives Know Basic techniques Simplicity Know your target

Support brand image Reinforce advertising

Creativity
Attn grabbing visuals

Be clear

Block 6
Distribution and Public Policy

Chapter 18 Sales Forecasting

What is a sales forecast? How to prepare a sales forecast? Product sales determinants

Consumer non-durable goods Consumer durable goods Industrial goods Breakdown approach Market build-up approach

Approach to sales forecasting

Methods of forecasting

Status of forecasting method usage The evaluation of forecasts Computerised sales forecasting Relating the sales forecast to the sales budget an profit planning

Executive Judgement Surveys Time series analysis Corelation and regression methods Market tests Combining forecast and using judgement

Chapter 19 Distribution Strategy

Importance of channel of distribution Alternative channels of distribution

Direct selling Mercantile Agents

Merchant Middlemen

Brokers Commission agent Wholesalers Retailers

Functions performed by retailers Services rendered by the retailers Effective coordination between wholesaler and retailers Types of retailers

Department stores Co-operative stores Multiple shops or chain stores

Role of middlemen in Indian Economy Selecting an appropriate channel

Physical distribution tasks

The type of product Nature and extent of the marker Existing channels for comparable products Buying habits of consumers Cost involved in distribution

Location of fixed facilities Specific issues relating to maintenance of stocks

Location of manufacturing facilities Location of warehouses Mode and method of transportation Inventory decisions Using external distribution agency

Chapter 20 Managing Sales personnel

Selling and sales management Recruitment and selection of salesmen Training of sales personnel Motivating the sales personnel Controlling the sales personnel

Chapter 21 Marketing and Public Policy

Regulatory role of the government Role of government in marketing in developing economy Government control and marketing decision making process Impact of government control on product decision Impact of government control on pricing decision Impact of government control on promotion decision Impact of government control on channel and distribution decision

Chapter 22 Cyber Marketing

What is cyber marketing Cyber marketing and conventional marketing

Cyber marketing model The nature of cyber marketing

Interconnectivity Interactivity Involvement Information Individualisation integrity

Customer profiling, segmentation and targeting Product planning Branding Pricing decision Advertising and sales promotion Distribution Marketing research

Limitations of cyber marketing

Limits of digitisation Shopping experience Security issues Internet access density Customers used to freebies Dot.com bust

Attracting traffic to the internet site

What is internet ??

Global network of interconnected networks.

Includes millions of corporate, government, organizational and private networks. Types of network forming internet Intranet Extranet Web

What is E- Marketing

Process of growing & promoting an organization using online media

Ties creative and technical aspects of internet. Creating, communicating and delivering value to customers. Managing customer relationship.

Objectives of Internet Marketing

Create Awareness. Generate Interest. Disseminate Information. Create an Image. Create a Strong Brand.

Characteristics of Internet marketing

Relatively Inexpensive. Wide reach. Allows research, purchase of products and services on convenience. Quick Response.

Differentiators from offline Marketing

One-to-one vs. one-to-many approach Demographics targeting vs. behavioral targeting. Measurability . Response and immediate results.

Limitations of E- Marketing

Dependant on technology. Rigid mindset. Virtual aspect. Security Concern. Maintenance Cost. Global competition.

SWOT Analysis

Strength

Your specialist marketing expertise. A new, innovative product or service. Location of your business. Quality processes and procedures. Any other aspect of your business that adds value to your product or service.

Weakness

Lack of marketing expertise. Undifferentiated products or services. Location of your business. Poor quality goods or services. Damaged reputation.

Opportunity

A developing market such as the Internet. Mergers, joint ventures or strategic alliances. Moving into new market segments that offer improved profits. A new international market. A market vacated by an ineffective competitor

Threat

A new competitor in your home market. Price wars with competitors. A competitor has a new, innovative product or service. Competitors have superior access to channels of distribution. Taxation is introduced on your product or service.

Hidden Benefits

Tax Breaks. Low Start up Costs. Low Operating Costs. High Profit Margin. Market for little or no money. You do not need your own Product. Time Freedom. Open 24 Hours in every country.

4Ps of Internet Marketing

Product

Make sure that your product is something that is useful to your intended customers. Make sure that the product does what it says. Ensure Quality. Packaging. Brand Consistency. Good After Sales Service.

Price

Competitive Pricing. Customers willingness to pay. Experimentation with price.

Place

Placement on Major Search Engines. Placement of vertical search engines/ guides and local search. Placement through affiliates.

Promotion

Promotion Promotion Promotion Promotion

through display advertising. though search marketing. through socal media. through Public Relations.

Strategies of E -Marketing

7 Dimensions to Consider

Personalization. Privacy. Customer Service. Community. Site. Security. Sales Promotion.

Classification of E-Marketing

Methods of Internet Marketing

Search engine marketing. Display Marketing E-mail Marketing, Affiliate Marketing Interactive Marketing Blog Marketing. Viral Marketing

Segmentation and Targeting

Segmentation

Geographic Demographic (Age, Income, Gender, Education, Ethnicity) Psycographic (Activities, Interests, Opinions, Personality, Values.) Behaviour (Benefits sort, Usage level, Brand Loyalty, User Status.)

Behavioral Segmentation

Simplifiers Surfers Connectors Bargainers Routiners

Targetting

Four different approaches 1) Mass Marketing. 2) Multi segment Marketing. 3) Niche Marketing. 4) Micro Marketing.

Differentiation and Positioning Strategies

Differentiation

Product. Service. Personnel. Channel. Image.

Positioning

Technology. Benefit. User Category. Competitor. Integrator.