Download - Marketing Management – CBS pgmpi - class 4
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Marketing Management
31/10/2011
IGTC Class 5&6Sivapriya Krishnan
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Branding Challenges
Branding Decisions-Brand SponsorBrand Name Decision -Brand StrategyBrand Reposition Decision
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Branding
Three commonly used researchapproaches to get at a brand meaning:
1.Word Association
2.Personification3.Brand Essence through laddering
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BrandingBuilding brand identity and thereby
developing a brand bonding with theconsumers is very important
Name, logo, colours, tagline,
symbols. There must be a vision and mission
for every brand
Brand contract must be honest
Bonding develops not throughadvertising but by the brand
experience
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Brand Equity
Brand Equity is the positive differentialeffect that knowing a brand name hason consumers
When the brands are identical,consumer preference for one over theother signifies the brand equity
The extent to which consumers will paya premium for the particular brand is ameasure of brand equity
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Brand Equity
Brand Equity provides a number ofcompetitive advantages :
Trade leverage distributors and
retailers Command higher price
Launch extensions as base credibility is
high Defence against price competition
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Packaging & Labelling
Packaging is all the aspects ofdesigning and producing the containerfor a product
Packaging is both an art and a science
Packaging should fulfill all needs in
respect to social and legalrequirements
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Packaging & Labelling
Factors influencing the growth ofpackaging:
Need for self service : convenience ,handling and attractiveness
Consumer affluence
Company and brand image
Innovation opportunity
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Packaging & Labelling
Labelling :
A label is a simple tag which
designates a package.
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Product / Brand Image
In marketing terms, products find space in the consumer
minds according to his/ her
perceptions Perceptions are subjective,
Governed by individual values,
Beliefs, experiences, environment
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Consumers Mind
Dets
Soaps
Cosmetics
TVMobiles Food Brand A
B, C etc
Innumerable products and brands jostling for the consumers mind space
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Product Positioning
Slotting the product in the consumersmind
Output : Successful creation of acustomer focussed value Proposition ,a cogent reason as to why the target
market should buy the product.
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Product Positioning
Acc. To Kotler, arranging for a product to occupy a
clear, distinctive, desirable place in the
market and in the minds of the targetconsumers.
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Product Positioning
What is positioning ?
It is not what you do to a product, but
what you do to the mind of theconsumers
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Product Positioning
Differentiation :
Process of adding a set of meaningfuland valued differences to distinguish
the companys offerings fromcompetitors offerings
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Product Positioning
Positioning encompasses the following
Position as a place
Position as a rank
Position as a mental attitude
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Product Positioning
What is perceptual mapping? Draw a map of the overall category
benefits
Represent the consumer perceptionsin a two / multi dimensional space tosee where our brand is positioned as
against others
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Perceptual map - soaps
COSMETIC
HEALTH
LUXURY
UTILITY
Liril
Nirma Bath
Lux
Mysore Sandal
Dove
Camay
Hamam
Margo
Lifebuoy
Cinthol
Neko
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Product Positioning
Positioning methods : Product feature positioning
Benefit positioning
Specific usage positioning User category positioning
Position against other products
Positioning by usage
By product class
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Product Positioning
Positioning is easy for the first mover
The human mind cannot rank morethan seven items at a time
Once your mind is set, difficult to reset
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Product Positioning
1. Important the difference delivers a highlyvalued benefit to a sufficient number of buyers
2. Distinctive The difference is delivered in adistinctive way
3. Superior the difference is superior to other
ways of obtaining the benefit4. Preemptive the difference cannot be easily
copied by others
5. Affordable - the buyer should afford to pay for
the difference6. Profitable it should be profitable to introduce
the difference
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Product Positioning
Positioning Errors :
Under positioning
Over positioning
Confused positioning
Doubtful positioning
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Pricing
Price
A value attached for the services
and the inherent worth of a productor service.
Not just a number tag on an item
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Pricing
Price produces revenue other Ps
produce costs
Price is by easier to adjustcompared to other Ps
Price conveys a certain intendedvalue proposition to he consumers
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Setting the price
Selecting the pricing objective
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Determining demand
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Estimating Costs|
Analysing competition
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Selecting a pricing method
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Selecting the final price
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Selecting the price
Companies select five majorobjectives :
Survival
Maximise current profit
Maximise market share
Maximum market skimming
Product quality leadership
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Determining the demand
Price sensitivities
Analyse past prices sales and other
estimates Price experiments
In all of the above the competitive
reaction to pricing will have to bebuilt in.
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Estimating Costs
Fixed , variable and total costsstructures.
Costs of RM / PM and otheroverheads
Japanese method of Target
Costing
Determine the final product appeal andthen cost each element
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Select the pricing method
Mark up pricing
Target return pricing
Perceived value pricing Value Pricing
Going rate pricing
Auction type pricing Group pricing
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Select the pricing method
Mark up pricing
Add up a standard mark up to theproducts cost
E.g. construction companies, legaland accounting firms use this method
This method does not take into
account market realities Works only if the price fetches
expected sales
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Select the pricing method
Mark up pricing
Most popular
1) estimating costs is easier thanestimating demand
2) prices tend to be similar, price
war is reduced 3)fair to both buyers and sellers
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Select the pricing method
Target return pricing
Pricing is done according totargetted rate of return on
investment (roi) Public utilities use this method for
determining returns
Companies strive to lowerfixed/variable costs, to break evenfaster
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Select the pricing method
Perceived value pricing
Pricing done on what the consumersperceive as value of the product
Value is given for :Brand image
Performance
Customer support
Supplier reputationEsteem
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Select the pricing method
Perceived value pricing
There are three different buyers :
Price buyers : stripped down price andreduced services
Value buyers : innovate and re affirmvalue
Loyal buyers : constantly buildrelationship
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Select the pricing method
Value pricing
Charging low prices for a fairly highvalue item
In retail, Everyday Low Pricing(EDLP) is observed
The other is : High Low Pricingcharge high but run frequentpromotions
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Select the pricing method
Going rate pricing
Price based on competition in themarket
No demand and cost parametersare considered
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Select the pricing method
Auction type pricing
Based on the highest bidder
Disposes higher inventories Used for high value items
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Select the pricing method
Group pricing
Consumers group together for abetter price
E.g. co-operatives, mandis
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Select the final price
In selecting the final price thecompany include factors like
Psychological pricing
Gain and risk sharing pricing
Influence of other marketing mixelements
Company pricing policy
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Adapting Pricing
Geographical segmentation
Price discounts and allowances
Promotional Pricing
Discriminatory pricing
Product mix pricing
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Initiating and responding to pricechanges
Initiating price cuts
Initiating price increases
Responding to competition
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Nine Price Strategies
PremiumStrategy
High valuestrategy
Super valuestrategy
Overcharging strategy
Mediumvalue
strategy
Good valuestrategy
Rip OffStrategy
FalseEconomyStrategy
EconomyStrategy
Pr
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u
ct
Q
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i
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Price
H M L
H
M
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Marketing Segmentation
- Market Groups affected by the productfor a specific function with a certaincompetition
- (refer to fig 1. pg. 26 of the block 2, unit 1)
- Segmentation is the basis of breaking up
these subgroups for a marketing mix
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Segmentation
Market segments are :
sub classes of the market groupedtogether on the basis of similarity of wants,behaviour and income parameters
Can be called a group of people who seekby far the same aspects of the product
In reality , it is a marketers definition and
concept of the market
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Segmentation
Relationship of a segment to a market
Differences of the segment based ondemands
Mobility of buyers across similar segments
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Segmentation
Segmentation vs product differentiation Product differentiation products
designed according to appeales of a givensegment
Differentiation is complete if there aredifferences in the following : Physical aspects
Services offered Convenience
image
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Segmentation
Benefits of segmentation:
Clarity about the consumers
Exploit market better
Better match of product to consumer needs
Better loyalty
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Segmentation
Doubts : Not mutually groups not water tight
compartments
Commercial viability of small segments
Competitive practices of rivals
Insignificant differences exist between brands
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Segmentation
Doubts : Not mutually groups not water tight
compartments
Commercial viability of small segments
Competitive practices of rivals
Insignificant differences exist between brands
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Marketing Research
- The systematic gathering , recording andanalysing of data about problems related
to the marketing of goods and servicesThe American Marketing Associationdefinition
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Marketing Research
- Purpose of research :
- Decision making tool
- facilitation
- Risk reduction
- Discovering profitable opportunities
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Marketing Research - Scope
- Study of consumer behaviour
- Product design
- Designing distribution channels- Advertising design through consumer
perception
- Social marketing
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Marketing Research
- Steps in marketing research
- Problem definition
- Research design- Field work
- Data Analysis
- Report presentation
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Marketing Research
- Steps in marketing research
- Problem definition define the issue on
hand- Give a correct overview of current
scenario and future objective
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Marketing Research
- Steps in marketing researchResearch Design
- Data collection- Research instrument
- Sampling plan
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Marketing Research
- Steps in marketing researchField work
- Planning and supervision
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Marketing Research
- Steps in marketing researchData Analysis
- Classifying raw data- Summarising data
- Analytical methods to analyse and then
make an inference
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Marketing Research
- Application of research
- Sales and market analysis
- Product research- Corporate research
- Advertising research