marketing 1 - wrap up

8/3/2019 Marketing 1 - Wrap Up

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Marketing - 1

A Wrap up



What is Marketing?Marketing is finding out

the consumer¶s 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 f or 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

1 Decision Areas in Marketing Class ActivityChapter 1

2 Breakthr ough Marketing Case : Mark¶s & Spencers3 Customer Analysis Mark¶s & Spencers update

Chapter 54 Consumer Behavior Gr oup Assignment

Chapter 65 Organizational Behavior Case : Kinko

Chapter 76 Financials of Marketing Case : London Olympics

Reading Material7 Segmentation and Targets Case : Titan watches

Chapter 88

Service Marketing Case : Tata SkyChapter 139 Dealingwith competition Case : Kodak versus Fuji

Chapter 910 Competitive strategies Case : Kodak versus Fuji

contd.

Chapter 9

11 Assessing the Envir o

nment Gr o

up Assignment



13 Rural Marketing Case : Lifebuoy

Reading Material

14 Pr oduct Management Lifebuoy contd

Chapter 12

15 Brand Equity Case : Fair & Lovely

Chapter 10

16 Advertising Management Fair & Lovely contd

Chapter 18

17 IMC Case : Toyota Innova

Chapter 17

18 Gr oup Presentations

19 Gr oup Presentations

20 Final Exam Wrap Up Chs

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



Pr oduct Place Price Pr omotion

Quality Channels List price Advertising

Features Retail Discount PersonalSelling

Options Coverage Allowances PR

Style Locations Credit Sales Pr o

Brand

name

Inventory Terms &

Conditions

Direct

Marketing

Packaging Transport

SizesServices

Warranties

Returns



Marketing Mix and the Customer

Four Ps

Pr oduct Price

Place

Pr omotion

Four Cs

Customer solution Customer cost

Convenience

Communication



Categories of Marketing Alliances

Pr oduct or Service Alliances

Pr omotional Alliances

Logistics Alliances Pricing collaborations



Final Exam

Will entail all concepts of marketing. No

direct questions. Only applications.



How do you appr oach a case?

Marketing decision making :

How to strategize on the pr oblem

identified? Give alternatives that are strategic in

nature.

What are the co

nsequenceso

f eachdecision?

Reasons f or 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 pr oduct.

( What level of pr oduct and theref ore what

is the requirement )

Understand the envir onment and theconstraints.

Evaluate the communications.

What are the execution issues.



How do we identity needs, wants , desires and market to diverse

and large cr owds :

STP

Brands &

Benefits

Customer

Satisfaction

Markets:

Channels

Supply Chain

Competition

Mktg

Envn.Societal

Forces

Consumer Capabilities Company

Capabilities

Internal Marketing: Relationship Marketing;

Integrated Marketing

4 P¶s



Marketing orientation

Creating paradigm shifts

Creation of concepts create a future

Up gradation of pr oducts / services withvalue additions

Extending life cycles of pr oducts

Consumer choices with more competition Holistic marketing



Co

pyright © 2009Dorling Kindersley

What Influences

Consumer Behavi

or?

Cultural Factors

Social Factors

Personal Factors



Co


Key Psychological Pr ocesses

Motivati

on

MemoryLearning

Perception



Co


Motivation

Fr eud¶s

Theory

Behavior

is guided by

subconscious

motivations

Maslow¶s

Hier ar chy

of Needs

Behavior

is driven by

the lowest,

unmet need

Herzber g¶s

Two-Factor

Theory

Behavior is

guided by

motivating

and hygiene

factors



Bases for Segmentation

Geogr aphic

Demogr aphic ± Sex, Age,

Income, Education,

Occupation, Marital status

Psychological ± Needs,

Personality, Perception,Learning, Attitude, Motivation

Psychogr aphic

Life style

Socio-cultur al ± religion,

Social class, family,

Race, co

mmunity

Pr oduct Related

Ie benefits, usage & loyalty



Appr oaches to Segmenting

Business-to

-Business Markets1. Demographics

2. Customer type

3. End-use application

4. Purchasing situation



4-19

Market TargetingSpecifying segments to pursue

Differentiated Marketing

The organization pursues

several different market

segments simultaneously

Organization

Market



4-20

Concentrated Marketing

The organization f ocuses

on a single market segment

Organization

Market

Market TargetingSpecifying segments to pursue



The envir onment

Inter nal

Employees

EquipmentFinance

Departments

Micr o

Customers Suppliers

Compet- Shareholdersitors

Other Stake holders

Macr o

Political Economic

Technological Social



Michael Por ter ¶s Five For ces of Competition

Industry

Competitiveness

Intensity of

Rivalry

NewEntrants

BuyersSuppliers

Substitute

pr oducts

Threat of substitutes

Bargaining

power of

buyers

Bargaining

power of

buyers

Threat of new entrants

Differ ential

AdvantageCost leadership

Differentiation

Focus



Analyzing Competitors

Step 2 - Five Variables to MonitorWhen Analyzing Competitors:

Share of market Share of mind

Share of heart

Share of Voice

Share of Shop



Competitive Strategies

Market Leader: Innovation, Fortification,

Confr ontation, Harrasment.

Challenger Strategy: price disco

unt, cheappricing, mini size,service, cost, advertising.

Follower Strategy :

Nicher Strategy



Pr oduct Decisions

Existing pr oduct position

Impr oved pr oducts

New pr oducts

Extended market base

Expansion of customer base

New pr oducts and extended customer base

Impr oved market and cust

omer base Entirely new pr oduct f or new markets-

diversification



Classification of Consumer

Pr oducts



© The McGraw-Hill Companies, Inc. Companies, 1999Irwin/McGraw-Hill

Exhibit 5-8

See Page 164 Pr oduct Life Cycle

S lide 28

Marketing

Objectives³Wean´ pr oduct

in market

Time

S a l e s

Intr oduction Gr owth Matur ity De

Maximize

ma rket shar e

ear ly

Fight for

ma rket shar eMinimize

effor t and t ime

to maintain

ma rket

cline



Marketing Strategies f or PLCINTRODUCTION GROWTH MATURITY DECLINE

Pr oductStr ategy

Place strategy

Pr omotion

Str ategy

Pr icingStr ategy

Limited models

Fr equent

changes

Mor e models

Fr equent

changes.

Lar ge number

of models.

Eliminate

unpr ofitable

models

Awar eness.

Stimulatedemand.Sampling

Aggr essive ads.

Stimulatedemand

Adver tise.

Pr omote heavily

Phase out

pr omotion



Ansoff¶s Matrix

Pr oducts ->

Markets

Existing New

Existing Market

Penetration (

Increase MS)

Pr oduct

development

New MarketDevelopment

Diversification



Categories of Adopters

P

e r c e n t a g e o f A d o p t e r s

Time

Innovators2.5%

Early Adopters13.5%

LateMajority34%

EarlyMajority34%

Laggards16%

5



Pr oduct Management

Kotler¶s 5 levels or customer value

hierarchy

Pr oduct lines

Pr oduct mix

Pr oduct width

PLC Adoption of new pr oducts



Five Levels of Meaning f or a

Pr oduct

1.32

y The core benefit level is the fundamental need or want thatconsumers satisfy by consuming the pr oduct or service.

y The generic product level is a basic version of the pr oductcontaining only those attributes or characteristics absolutelynecessary f or its functioning but with no distinguishingfeatures. This is basically a stripped-down, no-frills version of the pr oduct that adequately perf orms the pr oduct function.

y The expected product level is a set of attributes or characteristics that buyers normally expect and agree to whenthey purchase a pr oduct.

y The augmented product level includes additional pr oductattributes, benefits, or related services that distinguish the

pr oduct fr om competitors.y The potential product level includes all the augmentations and

transf ormations that a pr oduct might ultimately undergo in thefuture.



A brand is theref ore more than a pr oduct,

as it can have dimensions that differentiate

it in some way fr om other pr oducts

designed to satisfy the same need.



Pr oduct Mix

The assortment of pr oduct lines and individualpr oduct offerings that the company sells. The

right blend of pr oduct lines and pr oducts allows a

firm to maximize sales opportunities.

Pr oduct mix Width-the number of pr oduct

lines offered.

Pr oduct mix Length-the number of different

pr oducts a firm sells. Pr oduct mix Depth-variations in each

pr oduct that a firm markets in its mix.Eg

Reach toothpaste, toothbrush, floss etc..



Integrative Gr owth

Backward integration ± taking contr ol of

supply system

Fo

r w

ard integratio

n ± distributio

n and retail Horizontal integration ± mergers and

acquisitions.



Developing a communication pr ogram

Market structure and players

Physical attributes & consumer benefits

How to position within a targeted segment.

Value pr oposition & differentiation

Communication objectives

Communication concept

Phases in communication

IMC



© Macmillan Publishers

India Ltd.

Chapter 36 / Slide 38

Deciding the Adver tising Objectives As a business task, advertising has to be objective-bound

AID A, the four-stage model Attention, Inter est, Desir e, Action

They suggest that pur chase pr ocess involves sever al stages and

effects, one effect leading to another

Advertising Objectives can be Set Ar ound Four Br oad Themes

The behaviour al constr ucts- gener ating tr ials and stor e visits

Attitude- attitude change and attitude measur ement

Awar eness- cr eating awar eness of new pr oducts/ br ands/ ideas

Pr oduct positioning and br and building



Comm

on C

ommunicati

on Platf

orms

Advertising Sales

Pr omotion

Public

Relations

Personal

Selling

Direct

Marketing

Pr int and

br oadcast

ads

Contests,

games,

sweepstakes,

lotter ies

Pr ess kits Sales

pr esentation

Catalogs

Packaging-

outer

Pr emiums

and gifts

Speeches Sales

meetings

Mailings

Packaging

inser ts

Sampling Seminar s Incentive

pr ogr ams

Telemarketin

g

Motion

pictur es

Fair s and

tr ade shows

Annual

r epor ts

Samples Electr onic

shopping

IMC

marketing 1 - wrap up

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