Professional Documents
Culture Documents
Management
Module I
Module II
Module III
Module IV
Module V
Rural Marketing : Growing importance Unique features of rural markets - Market mix
planning for rural market - Service marketing
Vs. product marketing - Green marketing Social marketing - Relationship marketing Niche marketing
Module VI
E-Marketing: Traditional marketing Vs. Emarketing - Internet marketing - Eadvertising - New trends in internet marketing
E-branding - E-payment systems and
security features in internet.
Marketing
Marketing:
Meaning and definition
Scope and importance
The Hindu
08/12/2015
Market
Classification of Markets
09/12/2015
Negative Demand
No Demand
Latent Demand
Falling Demand
Irregular Demand
Full Demand
Overfull Demand
Un-wholesome Demand
to +
Stimulational Mktg.
Developmental Mktg.
Remarketing
Synchro-marketing
Maintenance Mktg.
De marketing
Counter-marketing
Nature of marketing
Communication
Goods & Services
Market
Industry
Money
Information/Feedback
WHAT IS MARKETING
MANAGEMENT ?
EVOLUTION OF MARKETING
CONCEPT
Marketing management has evolved through
following stages :
Question 1
You are trying to cook an egg for exactly fifteen
minutes, but instead of a timer, you are given
two ropes which burn for exactly 1 hour each.
The ropes, however, are of uneven densities
(ie, half the rope length-wise might take only
two minutes to burn.) How can you cook the
egg for exactly fifteen minutes?
MARKETING CONCEPTS
Traditional concepts
Modern Concepts
Traditional concepts
Exchange Concept
Production concept
Product concept
Selling concept
(1)Exchange Concept
Company
Produce more & more
Produce
Sell
Consumers
Produce
Quality
Products
Sell
Produce
Sell it
Consumers
Modern Concepts
Marketing concept
Societal concept
Total access concept
Holistic marketing concept
Consumers
Produce it
Market it
Evolving concept.
Advancement of Information technology
Connect people and increase interaction
Consumers can compare offerings, contribute
towards product offerings
E-commerce, m-commerce, interactive
advertisement,
STRATEGIC CONCEPT OF
MARKETING
Population growth
Increased disposable income
Change in attitude towards life
Technological development
Growth in marketing channels
Demand for luxury
Desire for quality products
Objectives of Marketing
Management
Increasing consumption
Creating goodwill
Cost reduction
Profit through customer satisfaction
Ensure growth
Providing wide choice of goods
Improve quality of life
Retaining customers
Advantages of marketing
To society
To companies
Provides employment
Rises living standard
Creates utilities
Reduce costs
Solves social
problems
Income generation
Planning and decision
making
Distribution
Exchange information
Earn goodwill
Global presence
Advantages of marketing
To customers
Quality products
Variety of products
Knowledge of
products
Helps in selection
Consumer satisfaction
To economy
Marketing Process
Concentration -
Areas of applicability
Goods
Services
Experience
Events
Persons
Places
Property
Organizations
MARKETING SYSTEM
MARKETING SYSTEM
MAXIMIZE CONSUMPTION
MAXIMIZE CONSUMER SATISFACTION
MAXIMIZE CHOICE
MAXIMIZE LIFE QUALITY
VALUE MAP
CONSUMER DELIGHT
Value
Disadvantaged Area
Perceived
Price
C
B D
E
A
Production
Finance
CUSTOMER
Marketing
Personnel
Responsive Marketing
Anticipative Marketing
RESPONSIVE MARKETING
ANTICIPATIVE MARKETING
It is a form of marketing when a company
recognize an emergent or latent need, and
come out with an affordable solution.
Evian, Perrier anticipated growing market for
bottled drinking water as the quality of water
deteriorated in many places.
Anticipative marketing is more risky than
responsive marketing; companies may come
into market too early or too late, or may even
be totally wrong about thinking that such a
market would develop.
Account-based Marketing
Affiliate Marketing
Affinity Marketing
Agricultural Marketing
Alliance Marketing
Ambush Marketing
Analytical Marketing
Article Marketing
B2B Marketing
B2C Marketing
B2P Marketing
Behavioral Marketing
Blackhat Marketing
Brand Marketing
Brick and Mortar Marketing
Buzz Marketing
Call Center Marketing
Campus Marketing
Catalog Marketing
Cause Marketing
Celebrity Marketing
Channel Marketing
Close Range Marketing
Closed Loop Marketing
Cloud Marketing
Communal Marketing
Community Marketing
Computational Marketing
Consumer-Generated Marketing
Content Marketing
Contextual Marketing
Conversion Rate Marketing
Cooperative Marketing
TYPES OF MARKETING
TYPES OF MARKETING
Mass Marketing
De marketing
Meta marketing beyond, widen to non business
Mega marketing entering into unreceptive/blocked
Reciprocal
Green,
Event
Word of mouth
Guerrilla Marketing
Market Segmentation
Market Segmentation
Market Segmentation
Process
Patterns of Market
Segmentation
Undifferentiated marketing
Differentiated marketing
Concentrated marketing
Customised or personalised marketing
each customer
Niche Market
Basis of Market
Segmentation
Demographic segmentation
Age
Gender
Family life cycle childhood, bachelorhood,
honeymooners, parenthood, post parent hood,
dissolution
Religion
Income
Occupation
Family size
Basis of Market
Geographic segmentation
Segmentation
Area
Climate
Population density
Behavioural segmentation
Basis of Market
Segmentation
Psychographic segmentation
Hybrid segmentation
Limitations of market
segmentation
Market Mapping
A study of various market conditions that is
plotted on a map to identify trends and
corresponding variables between consumers an
d products.
Market mapping can help companies locate
problem areas and figure out
the source of problems by examining related
variables.
Market mapping helps in tackling the complexity
of market segmentation
Approaches:
Total market
Concentration
Multi segment
Market segmentation
Product positioning
Elements :
product,
company,
competitors,
customer
Techniques of product
positioning
Positioning by corporate identity
Brand endorsement
Product attributes and benefits
use, occasion and time
price and quality
product category
product user
competitor
Consumer Behaviour
Type of CB:
Buying motives
Consumer
buying/Consumer decision
making
Recognitionprocess
of an unsatisfied need
Identification of alternatives
Evaluation of alternatives
Purchase decision
Post purchase behaviour
Factors
influencing/Determines
of
Psychological factors
consumer
Consumer needs behaviour
& motivation
Cultural Factors
Social factors
Personal Factors
Age
Stages of family life cycle
Economic factors
Personal income
Family income
Income expectations
Savings
Liquidity position
Consumer credit
Environmental factors
Political situation
Legal forces
Technological advancement
Consumer Ambivalence
Consumer satisfaction
Customer delight
Marketing Mix
The 4 Cs
Organisation Facing
Product =
Customer Facing
Customer/ Consumer
Price =
Cost
Place =
Convenience
Promotion =
Communication
4 P's
Value
perceived in
the mind of the
consumer
Marketing
communications
Cover location,
distribution,
channels and
logistics
Collection of features
and benefits that
provide customer
satisfaction
Product
For many a product is simply the tangible, physical entity that they may
be buying or selling.
Price
Price includes the pricing strategy of the company for its products.
How much customer should pay for a product? Pricing strategy is not only
related to the profit margins but also helps in finding target customers.
Pricing decision also influence the choice of marketing channels.
Using price as a weapon for rivals is as old as mankind, but its risky too.
Consumers are often sensitive for price, discounts and additional offers.
Another aspect of pricing is that expensive products are considered of
good quality.
Place (Placement)
It not only includes the place where the product is placed, all those
activities performed by the company to ensure the availability of the
product tot he targeted customers. Availability of the product at the right
place, at the right time and in the right quantity is crucial in placement
decisions.
Promotion
Advertising
Media Types
Message
Budgets
Sales promotion
Personal selling
Public relations/publicity
Direct marketing
Sponsorship
7 P's
7Ps
Factors influencing
Marketing mix
Marketing Factors
Marketing planning
Brand policy
Package policy
Advt. policy
Distribution policy
Pricing policy
Market research
Product life cycle
Market segmentation
Market Factors
Consumer behavior
Competition
Government control
Patterns of distribution
Module II
Product
What Is a Product?
A Product Defined
Classifying Products
Consumer Products
Characteristics of consumer
goods
Final consumption
Finished products
Utility
Associated services
Brand name
Communication packages
Numerous buyers
Small quantity purchase
Consumer Products
Convenience Products
11130
Shopping Products
Specialty Products
Unsought Products
Industrial Products:
Business Products
Installations
Accessory Equipment
11137
Raw Materials
Component Parts
Process Materials
MRO Supplies
Business Services
11140
Product policy
Product planning
Product development
Product cannibalisation
Product simplification
Product Diversification
Product differentiation
mix
Change in Demand
Change in population
Change in consumers income
Change in consumer behavior
Marketing influences
Product efficiencies
Financial influences
Use of waste
Competitors strategy
Profitability
Product standardization
Answers
Wallet
Tissue napkin/ Napkin tissue
Notebook
Tablespoon
Bathroom
Charger
Wash basin
Mobile phone
Handsoap
Newspaper
Product Branding
Views on Brands
A name, logo, or symbol that
evokes in customers a
perception of added value for
which they will pay a premium
price.
AJohn
product
with
a Winters
personality.
Torella,
J.C.
Group
Chris Staples
Marketing communications in any form has an impact
on customers perceptions.
What is a brand ?
Branding is a combined effort of the company which is projected to
the consumer.
Marketing
Company
Design
Brand
Consumer
What is a brand ?
(1) Products and services have become so alike that
they fail to distinguish themselves by their quality,
efficacy, reliability, assurance and care. Brands add
emotion and trust to these products and services,
thus providing clues that simplify consumers choice.
(2) These added emotions and trust help create a
relationship between brands and consumers, which
ensures consumers loyalty to the brands.
(3) The combination of emotions, relationships,
lifestyles and values allows brand owners to charge a
price premium for their products and services, which
otherwise are barely distinguishable from generics.
Essentials of a brand
Brand Loyalty
The degree of consumer attachment
to a brand.
Recognition
Recognition
Awareness of name,
benefit and package
Preference
Preference
Is useful, consumer
will buy if available.
Insistence
Insistence
What is Branding?
Branding
is endowing products
and services with the power of
the brand
Types of brands
Integrity of Brand
Product Packaging
Product A
Company
Websites
logo
Product B
Advertisements
A brand is a promise. A promise to achieve certain results, deliver a
certain experience, or act in a certain way. A promise that is conveyed by
everything people see, hear, touch, taste or smell about your business.
Brand elements
Marketing Activities
Meaning transference
Jordan - Nike
11179
11180
FIGURE 10.2
Introduction
11182
Growth
Intense competition
Emphasis on improvements and differences in competitors
products
Weaker competitors lose interest and exit the market
Advertising and dealer-oriented promotions predominate
Distribution sometimes expands to the global market
11184
11185
Decline
Strategic choices
11187
Identify
Identify
the
thestrategic
strategic
role
roleof
ofnew
new
products,
products,
then...
then...
1.
2.
1.
2.
Idea
Screening
Idea
Screening
generation
generation of
ofideas
ideas
3.
4.
5.
3.
4.
5.
Business
Market
Business Prototype
Prototype
Market
analysis
analysis development
development Tests
Tests
11188
6.
6.
CommerCommercialization
cialization
ADOPTER CATEGORIES
11189
Innovators
Early adopters
Late majority
Early majority
Laggards
Product Item
Whole
Milk
Product Line
Whole
Milk
Skim
Milk
2%
Milk
11191
11192
The product mix is the set of all products offered for sale
by a company.
A product mix has two dimensions:
Breadth - the number of product lines carried.
Depth - the variety of sizes, colors, and models offered
within each product line.
A product line is a broad group of products, intended for
similar uses and having similar characteristics.
11193
Trading up
Trading down
Product simplification produces products of
similar nature
Product differentiation-
Packaging
Marketing myopia
Brand
Brand..
Pricing
Factors to be considered
before adopting a Pricing
Strategy
SELECTION OF A PRICING
POLICY
APPROACHES TO PRICE
ADJUSTMENT
Geographical pricing
Promotional pricing (general perception that a
Different methods
Different methods are...
Product line pricing (price fixed for product lines and not
products),
Optional feature pricing (separate price for accessories
that come along with a product eg: car),
Captive product pricing (manufacturers price the
auxiliary products or spare parts relatively higher
than the basic product to overcome the low profit
earned on the basic product),
Two- part pricing (fixed price for an initial service and
subsequent charges for over and above the minimum
service consumed),
By-Product pricing (setting prices for by products
obtained from the original product which sets a way
to sustain competitive pressure on the original
product),
Product bundling pricing (manufacturer provides a set of
related products at a price eg :PC manufacturers
bundles free software (antivirus, office suites)
Pricing strategies
CHANNELS OF
DISTRIBUTION
MEANING
A channel of distribution or trade channel is the route or path
along which products flow from the point of production to the
point of ultimate consumption or use.
It starts with the producer and ends with the consumer . In
between there may be several intermediaries or middlemen
who operate to facilitate the flow of the physical product or its
ownership from the producer to the consumer.
In the words of STANTON A distribution channel consists of the
set of people and firms involved in the transfer of title to a
product as the product moves from the producer to the
ultimate consumer.
A channel of distribution shows three types of flows:
a) Products flow downwards from the producer to the
consumers.
b) Cash flows upwards from customers to the producer as
Channels of distribution
Warehousing
Transportation
Inventory
IMPORTANCE
Important element of marketing mix
Influences sales volume and profits
Determines where and when the
product will be available to users
Helps in reducing the effects of
fluctuations in production
TYPES (Length )
3) Manufacturer-wholesaler-retailer-consumer:
Traditional or normal channel
Suitable where producers have limited finance and
narrow product line
Channel used in case of consumer durables which
are not subject to frequent changes in fashion.
4) Manufacturer-agent-retailer-consumer:
Used when retailers are few or geographically
concentrated
Commonly used to sell agricultural products,
machinery and equipment, etc.
5) Manufacturer-agent-wholesaler-retailerconsumer:
Longest channel
Producer hands over entire output to the agent who
sales them to wholesalers
In case of cloth this channel is widely used
Door to door
salespersons
Catalogue Selling
Retail outlets
On Line Marketing
or Internet marketing
Telemarketing
2. MARKET CONSIDERATIONS
(a) Consumer or Industrial
Market
(b) Number & Location of
Buyers
(c) Size & Frequency of Order
(d) Buying Habits
4. MIDDLEMEN CONSIDERATIONS
(a) Availability
(b) Attitudes
(c) Management
(c) Services
Information
Negotiation
Promotion
Functions of
Distribution
Middlemen
Risk-taking
Ordering
Financing
Wholesaling and
Retailing
WHOLESALING
FUNCTIONS OF WHOLESALERS
Buying and Sorting
Selling and Promotion
Bulk Breaking
Storage
Transportation
TYPES OF
WHOLESALERS
Manufacturer
Wholesaler
Pure
Wholesaler
Limited Service
Wholesaler
Full Service
Wholesaler
Industrial
Wholesaler
Retailer
Wholesaler
Wholesaler
Merchants
WHOLESALERS
MARKETING
DECISIONS
Target market selection
Pricing Decisions
Promotion Decisions
Place Decisions
Retailing
Types of retailers
hire
Market
days
Types:
Catalogue
Television
Kiosk
Telemarketing
SMS marketing
Social marketing
Automating vending
E-commerce
M-Commerce
Multi Level Marketing
Promotion
PROMOTION
DEFINITION :Promotion involves disseminating information
about a product, product line, brand, or
company. It is one of the four key aspects of the
marketing mix. (The other three elements are
product marketing, pricing, and distribution.)
To generate sales and profits, the benefits
of products have to be communicated to
customers. In marketing this is commonly known
as promotions.
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Promotion Techniques
Promoting your business can take many different forms. You can
promote it online and offline. Promotion is a very important part of
every business imaginable. If you don't promote it, how are
customers supposed to know about it? Here are some very
effective ways to promote your product or service.
BUSINESS CARDS
PRESS RELEASES
ORGANIZATIONS
NEWS LETTERS
FREE STUFF
WEBSITE
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PROMOTION MIX
DEFINITION :Specific combination of promotional methods
such as print or broadcast advertising,
direct marketing, personal selling,
point of sale display, merchandising, etc.,
used for one product or a family of products.
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ADVERTISING
SALES PROMOTION
PUBLIC RELATIONS
PERSONAL SELLING
PUBLICITY
DIRECT MARKETING
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ADVERTISING
The means of providing the most persuasive possible
selling message to the right prospects at the lowest
possible cost".
Kotler and Armstrong provide an alternative definition:"Advertising is any paid form of non-personal
presentation and promotion of ideas, goods and
services through mass media such as newspapers,
magazines, television or radio by an identified sponsor".
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Kinds of advertising
Product advt.
Institutional advt.
Advocacy Advt. (view/ philosophy)
Comparative advt.
Reinforcement advt.(right choice)
Shortage advt
Co-opertive advt.
Commercial/ non-commercial
Surrogate advt. (substitute)
Advt. copy
Headline
Theme
Artwork
Subheading
Body copy
Signature
Attention value
Suggestion value
Retention
Conviction
Educational
Sentimental
Instinctive appeal
USP
SALES PROMOTION
An activity designed to boost the sales of a product or
service. It may include an advertising campaign, increased
PR activity, a free-sample campaign, offering free gifts or
trading stamps, arranging demonstrations or exhibitions,
setting up competitions with attractive prizes, temporary
price reductions, door-to-door calling, telemarketing,
personal letters on other methods.
More than any other element of the promotional mix, sales
promotion is about action. It is about stimulating customers
to buy a product. It is not designed to be informative a role
which advertising is much better suited to.
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Dealer
promotion
Price deals
Free goods
Advt. Materials
Allowance
contests
PUBLIC RELATIONS
The planned and sustained effort to establish
and maintain goodwill and mutual
understanding between an organisation and
its publics.
Public relations activities include, press
releases. company literature, videos,
websites and annual reports.
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PERSONAL SELLING
Personal selling is oral communication with potential
buyers of a product with the intention of making a sale.
The personal selling may focus initially on developing a
relationship with the potential buyer, but will always
ultimately end with an attempt to "close the sale
Personal selling is one of the oldest forms of promotion. It
involves the use of a sales force to support a push
strategy (encouraging intermediaries to buy the product)
or a pull strategy (where the role of the sales force may
be limited to supporting retailers and providing aftersales service).
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PUBLICITY
Publicity refers to nonpersonal communi-cations
regarding an organization , product , service , or
idea not directly paid for or run under identified
sponsorship .it usually comes in the form of
news story , editorial , or announcement about
an organization and/or its products and services.
Techniques used to gain publicity include news
releases , press conferences , feature articles ,
photographs , films , and videotapes.
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DIRECT MARKETING
Direct marketing is concerned with establishing an individual
relationship between the business offering a product or service and
the final customer.
Direct marketing has been defined by the Institute of Direct Marketing
as:
The planned recording, analysis and tracking of customer
behaviour to develop a relational marketing strategies.
The process of direct marketing covers a wide range of promotional
activities, These include:
Direct-response adverts on television and radio
Mail order catalogues
E-commerce
Magazine inserts
Direct mail
Telemarketing
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OBJECTIVES FOR
PROMOTION
BUILD AWARENESS.
CREATE INTEREST.
PROVIDE INFORMATION.
STIMULATE DEMAND.
REINFORCE THE BRAND.
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Remember Models of
Consumer Buying Behaviour
Awareness
Interest
Evaluation
Trial
Adoption
Promotional Tools
Personal Selling
Branding
Advertising
Sales Promotion
Sponsorship
Public relations
The
Customer
Packaging
Merchandising
Corporate Image
Direct Marketing
Internal Marketing
Exhibitions
Word of Mouth
Marketing Communications
Decisions
Identification of target audience
Rational appeals
Emotional appeals
Moral appeals
ENCODING
ENCODINGTHE
THE
MESSAGE
MESSAGE
Create
Createan
anad,
ad,
display,
display,or
orsales
sales
presentation
presentation
MESSAGE
MESSAGEAS
AS
INTENDED
INTENDED
AApromotional
promotionalidea
ideain
in
marketers
marketersmind
mind
MESSAGE
MESSAGE
CHANNEL
CHANNEL
Select
Selectthe
themedia
media
or
orother
othervehicle
vehicle
to
tocarry
carrythe
themessage
message
NOISE
Competing ads,
other
distractions
FEEDBACK
FEEDBACK
Impact
Impactmeasured
measured
using
usingresearch,
research,sales,
sales,
or
oranother
anothermeasure
measure
DECODING
DECODING
THE
THEMESSAGE
MESSAGE
Receiver
Receivercompares
compares
message
messageto
to
frame
frameof
ofreference
reference
MESSAGE
MESSAGE
AS
ASRECEIVED
RECEIVED
Knowledge,
Knowledge,beliefs,
beliefs,
or
orfeelings
feelingsof
of
receiver
receiverchanged
changed
RESPONSE
RESPONSE
Ranges
Rangesfrom
fromsimple
simple
awareness
awarenessto
to
purchase
purchase
Source
Coded
message
Medium of
transmission
Decoded
message
Receiver
or
audience
Feedback
NOISE
NOISE
Selling process
Prospecting
Preparing
Approaching
Presentation and demonstration
Overcoming objectives
Closing the sale
Market Research
International marketing
Consumer protection