summary marketing (1)

8/14/2019 Summary Marketing (1)

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Marketing MKT

Summary Book

PRINCIPLES OF MARKETINGPhilip Kotler

Gary Armstrong

CHAPTER 1

What is marketing?

It isNOTabot sells!The tool Mar"eting ses is thePRODUCTThe #stomer o$ Mar"eting is the CONSUMERIt in%ol%es the analysis in or&er to $in& ot 'hat to ma"e to satis$y the nee&s o$ the#onsmerManaging pro$itable #stomer relationships

Attra#t ne' #stomers by promising sperior %ale an& to "eep an& gro' #rrent#stomers by &eli%ering satis$a#tion!Captring the #onsmers attention

DEFINITION OF MARKETING

a( Mar"eting is the pro#ess by 'hi#h #ompanies #reate %ale $or #stomers an& bil&strong #stomer relationships in or&er to #aptre %ale $rom #stomers in retrn!

b( Mar"eting is the reali)ation o$ organi)ational ob*e#ti%es by $l$illing #stomer nee&s!

Nee!sare states o$ &epri%ation+, Physi#al $oo&- #lothing- sa$ety, So#ial belonging an& a$$e#tion, In&i%i&al Kno'le&ge an& sel$,e.pression

Wantsare $orms hman nee&s ta"e as shape& by #ltre an& in&i%i&al personality+, it is more abot /O0R o'n #hoi#e, bil& nee&s, E.ample+ An Ameri#an NEE1s $oo& bt 2ANTS a 3ig Ma#!

Deman!sare hman 'ants that are ba#"e& bying po'er+, 2ants be#ome &eman&s i$ bying po'er is a&&e& 42ants 5 3ying Po'er 6 1eman&(

Consmer7s nee&s an& 'ants are $l$ille& throgh a marketing o""ering#

Cstomer &ri%en mar"eting strategy+, 'ho is or #stomer8, 9o' #an 'e best ser%e these #stomers8, 2hat is or %ale proposition

o Featres abot the prot 'hi#h the #stomer 'ill be a'are o$o 3ilt e.pe#tations

Markets

Mar"et means the set o$ all a#tal an& potential byers o$ a prot or ser%i#e!

These byers share a parti#lar nee& or 'ant that #an be satis$ie& throgh e.#hangerelationships!

Sppliers

CompanyMar"eter

Competitors

Mar"etingInterme&iariess

En& sermar"et


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In being able to trans$orm the mar"eting strategy into a#tion a #onstr#t mar"eting programthat &eli%ers sperior %ale nee&s to be establishe&!Also bil&ing pro$itable relationships an& #reating #stomer &elight is important in &oings##ess$l mar"eting+

Per$orman#e o$ the prot : e.pe#tations 1issatis$a#tion

Per$orman#e o$ the prot ; e.pe#tations 1elight

Per$orman#e o$ the prot 6 e.pe#tations Satis$a#tion

Designing a $ustomer Dri%en Marketing strategy

Marketing Management

The art an& s#ien#e o$ #hoosing target mar"ets an& bil&ing pro$itable relationships 'iththem!

The *ob is not to $in& the right #ostmers $or yor prot- bt to $in& the right prots $oryor #stomers?

". The Societa Marketing Concept

A prin#iple o$ enlightene& mar"eting that hol&s that a #ompany shol& ma"e goo& mar"eting&e#isions by #onsi&ering #onsmers7 'ants- the #ompany7s re=irements- #onsmers7 long,rn interests an& so#iety7s long,rn interests!


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$ustomer Re&ationshi' Management

It means the o%erall pro#ess o$ bil&ing an& maintaining pro$itable #stomer relationships by&eli%ering sperior #stomer %ale an& satis$a#tion!

$ustomer (er)ei%e! *a&ue

It means the #stomer7s e%alation o$ the &i$$eren#e bet'een all the bene$its an& all the #ostso$ a mar"et o$$ering relati%e to those o$ #ompeting o$$ers!

Consmers ma"e bying #hoi#es base& pon their per#eptions o$ the %ale that %ariosprots an& ser%i#es &eli%er!

The #stomer7s %ale is base& pon the #onsmer7s assessment o$ the prot7s o%erall#apa#ity to satis$y his or her nee&s!

$ustomer Satis"a)tion

It means the e.tent to 'hi#h a prot7s per#ei%e& per$orman#e mat#hes a byer7s

e.pe#tations!To one e.treme- #ompanies 'ith many lo',margin #stomers may see" to &e%elop #a$icreation$hip$'ith them! At the other e.treme- in mar"ets 'ith $e' #stomers an& highmargins- sellers@#ompanies 'ant to #reate%u partner$hip$'ith "ey #stomers!

Companies to&ay also o$$er%re&uenc' (arketing progra($ that re'ar& #stomers 'ho by$re=ently or in large amonts!

Other #ompanies sponsor cu# (arketing progra($that o$$er members spe#ial bene$its anreate member #ommnities!

To&ay7s #ompanies are bil&ing more &ire#t an& lasting relationships 'ith more #are$llysele#te& #stomers!

Se&e)ti%e Re&ationshi' Management

This means that the #ompany is targeting $e'er more pro$itable #stomers- sing #stomerpro$itability analysis to assess the %ale o$ #stomers to the $irm!

(artner Re&ationshi' Management

This means that the #ompany 'or"s #losely 'ith partners in other #ompany &epartments an&otsi&e the #ompany to *ointly bring greater %ale to #stomers 4relating 'ith the #stomer

&ire#tly(

/o #an bil& &ire#t or in&ire#t relationships 'ith the #stomer! For e.ample 3M2 ses&ire#t relating in or&er to bring the prot- their l.ry #ars- &ire#tly an& in a personal 'ay tothe #stomer! M#1onal&s $or e.ample ses in&ire#t relations to the sele#te& #onsmers!


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$ustomer +oya&ty an! Retention

$ustomer +i"etime *a&ue

The %ale o$ the entire stream o$ pr#hases that a #stomer 'ol& ma"e o%er a li$etime o$patronage 4It is not *st abot losing one single sale 'hi#h gets lost i$ losing a #stomer(!

Share o" $ustomer

The share a #ompany gets o$ the #ostmers pr#hasing in their prot #ategories!

$ustomer e,uity

It is the total #ombine& #stomer li$etime %ales o$ all o$ the #ompany7s #stomers!Aim o$ #ostmer relationship management is to proe high #stomer e=ity!

The Ne- Marketing +an!s)a'e

Internet pbli# 'eb- #onne#ts people- in$ormation e.#hange in#rease

Rapi& Globali)ation Call $or more Ethi#s an& So#ial Responsibility Gro'th $or more not,$or pro$it Mar"eting 4more non,pro$it organi)ations li"e #olleges-

hospitals- et# are sing mar"eting( E.ample+ Thin" o$ 9an)e 0ni%ersity

Con#lsion B The Marketing (ro)ess+

So#iety4long,term 'ell being

Consmers2ant an& Nee&s

CompanyOrgani)ational Ob*e#ti%es

Mar"eting


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CHAPTER 2

$om'any an! Marketing Strategy

Strategi) (&anning

Strategi# Planning is the pro#ess o$ &e%eloping an& maintaining a strategi# $it bet'een theorgani)ation7s goals an& #apabilities an& its #hanging mar"eting opportnities!

Marketing (&anning

, Inpt to strategi# planning, A gi&ing philosophy $or ea#h bsiness- prot an& bran&, A system o$ plans that best a##omplishes the $irm7s o%erall ob*e#ti%es an& a#hie%es

#stomer satis$a#tion

Mission Statement

It is the statement o$ the organi)ation7s prpose B 'hat it 'ants to a##omplish in the larger

en%ironment!It is also realisti#- spe#i$i#- base& on &istin#ti%e #ompeten#ies- measrable an& moti%ating!

Mission .uestions

9O2 4'hi#h mar"eting strategy(829AT 4'hi#h prot(8An& 29O 4'ho is the #stomer@target grop(8

FIT

!

D!

!

!

!

!

Organi)ational Capabilities Mar"eting Opportnities


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*ision Statement

The "in& o$ #ompany a #ompany plans an& tries to be#ome!It is a $tre oriente& roa&map an& spells ot 'here the #ompany is hea&ing to'ar&s!

The missionis either to set+Market oriented+ $o#sing on #stomer nee&sProduct oriented+ $o#sing on the prot

In &esigning the per$e#t #u$ine$$ port%oiothe #ompany nee&s to analy)e the #rrentport%oioorStrategic )u$ine$$ *nit$ +S)*,!

Strategi) Business /nit 0SB/1

, has its o'n mission statement an& ob*e#ti%es!, it #an stan& on its o'n 4e!g!+ as a single prot(, it is al'ays part o$ the #ompany

Business 'ort"o&io

The #olle#tion o$ bsiness an& prots that ma"e p the #ompany!

(ort"o&io Ana&ysisThe pro#ess by 'hi#h management e%alates the prots an& bsinesses ma"ing p the#ompany!

, in or&er to &e#i&e 'hi#h S30s shol& re#ei%e less- more or no in%estment!, In or&er to &e%elop gro'th strategies $or gro'th or &o'nsi)ing!

In analy)ing the bsiness port$olio many #ompanies are sing the Boston $onsu&ting Grou'a''roa)h+The prpose o$ the 3oston Conslting Grop approa#h is that bsinesses are able to $in& ot'hat ma"es p the #ompany! In sing it- #ompanies are able to analy)e an& i&enti$y the "ey

bsinesses ma"ing p the #ompany! The #ompanies $in& ot abot their Mar"et Share an&

Mar"et Gro'th in sing the #lassi$i#ation o$ the $or S30s a##or&ing to the gro-th sharematri2

D!

!


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De%e&o'ing Gro-th Strategies

Mar"eting has the main responsibility $or a#hie%ing pro$itable gro'th $or the #ompany!Mar"eting mst i&enti$y- e%alate- an& sele#t mar"et opportnities an& lay &o'n strategies $or#aptring them!

One 'ay o$ i&enti$ying gro'th opportnities is the (ro!u)t3Market e2'ansion Gri!It is a port$olio,planning tool $or i&enti$ying #ompany gro'th opportnities throgh (arket

penetration- (arket deeop(ent- product deeop(ent- or dier$i%ication!

4Thin" abot the Starb#"s e.ample in #lass(

Market (enetration

gro'th by in#reasing sales o$ #rrent prots to #rrent mar"et segments 'ithot#hanging the prot 4e!g!+ opening a ne' shop in another region or #ontry bt 'ith the same

prots(!

Market De%e&o'ment

gro'th by i&enti$ying an& &e%eloping ne' mar"et segments $or #rrent #ompany prots4e!g!+ #hanging the target grop geographi#ally(!

(ro!u)t De%e&o'ment

gro'th by o$$ering mo&i$ie& or ne' prots to #rrent mar"et segments 4e!g!+ same targetgrop bt a&&ing a ne' protStarb#"s a&&e& Frapp##ino 'ith ree& #alories(!

Di%ersi"i)ation

gro'th throgh starting p or a#=iring bsinesses otsi&e the #ompany7s #rrent protsan& mar"ets 4e!g!+ &i$$erent prots- &i$$erent target grops going abroa& 'ith the#ompany an& o$$ering &i$$erent prots to the ne' target grops(!

A #ompany also nee&s to $in& strategies in do/n$i0ingthe port$olio i$ a #ompany 'ants toaban&on a prot or mar"ets!

o/n$i0ing:

Reing the bsiness port$olio by eliminating prots o$ bsiness nits that are notpro$itable or that no longer $it the #ompany7s o%erall strategy!


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(&anning Marketing

A$ter analy)ing an& establishing 'hat "in&s o$ bsinesses the #ompany 'ill operate in an& itsob*e#ti%es $or ea#h- 'ithin ea#h bsiness nit more &etaile& planning nee&s to ta"e pla#e!

Mar"eting is one o$ the planning #hannels besi&es hman resor#es- in$ormation systems-operations- pr#hasing- a##onting an& $inan#e+

o ! Mar"eting pro%i&es the #ompany 'ith a gi&ing philosophy themar"eting #on#ept 4%ie' Chapter abo%e(!

o D! Mar"eting pro%i&es inpts to strategi# planners by helping to i&enti$yattra#ti%e mar"et opportnities an& by assessing the $irm7s potential to ta"e

a&%antage o$ them!o ! Mar"eting &esigns strategies $or rea#hing the nit7s ob*e#ti%es! On#e the

nit7s are set- mar"eting7s tas" is to help #arrying them ot pro$itably!

Marketing (&anning in#l&es, The E.e#ti%e Smmary, The Crrent mar"eting sitation, S2OT analysis, Ob*e#ti%es an& Isses, The Mar"eting Strategy, A#tion programs

, 3&gets, Controls

Marketing Strategy

The mar"eting logi# by 'hi#h the bsiness nit hopes to a#hie%e its mar"eting ob*e#ti%es!

*a&ue $hain

The series o$ &epartments that #arry ot %ale,#reating a#ti%ities to &esign- proe- mar"et-&eli%er- an& spport a $irm7s prots!

It is important to &esign a )ustomer 4 !ri%en marketing strategy4Chapter H goes into &eptho$ that( throgh 'hi#h it e.presses the %ale #hain!

In s##ess$lly &oing so a #ompany $irst nee&s to segment its byers!

Consmers #an be grope& an& ser%e& in %arios 'ays base& ongeographic +region,-de(ographic +e.g.: age,- p$'chographic- and #ehaiora %actor$ 4Chapter (!

Market Segmentation

1i%i&ing a mar"et into &istin#t grops o$ byers 'ho ha%e &istin#t nee&s- #hara#teristi#s- or

beha%ior an& 'ho might re=ire separate prots or mar"eting programs!Market segment 0%ie- $ha'ter 53 into !e'th1

It is a grop o$ #onsmers 'ho respon& in a similar 'ay to a gi%en set o$ mar"eting e$$orts!

!


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Market targeting

It is the pro#ess o$ e%alating ea#h mar"et segment7s attra#ti%eness an& sele#ting one or moresegments to enter!

Market i%%erentiation and Po$itioning:

A$ter a #ompany &e#i&e& 'hi#h mar"et segments to enter- it mst &e#i&e ho' it 'ill&i$$erentiate its mar"et o$$erings $or ea#h targete& segment an& 'hat positions it 'ants too##py in those segments!

, A prot7s position is the pla#e the prot o##pies relati%e to #ompetitors in#onsmer7s min&s! There$ore a #ompany nee&s to sho' that their prot &i$$ers $romthat o$ the #ompetitors!

(ositioning

It is the arrangement $or a prot to o##py a #lear- &istin#ti%e- an& &esirable pla#e relati%eto #ompeting prots in the min&s o$ the target #onsmers!

Di""erentiationIt means that a #ompany nee&s to a#tally &i$$erentiating the mar"et o$$ering to #reatesperior #stomer %ale!

I$ the &e#ision is #lear 'hat "in& o$ mar"eting strategy a #ompany 'ants to &o it nee&s to planthe &etails o$ the mar"eting mi.- one o$ the ma*or mar"eting #on#epts in mo&ern mar"eting!

Marketing Mi2

It is the set o$ #ontrollable ta#ti#al mar"eting toolsThe ! P$

, (ro!u)t4the goo&s an& ser%i#es #ombination the #ompany o$$ers to the target mar"et

e!g!+ %ariety- =ality- &esign- $eatres- bran& name- pa#"aging et#! Chapter J(, (ri)e4the amont o$ money #ostmers pay to obtain the prot e!g!+ list pri#e-&is#onts- allo'an#e- #re&it terms et#! Chapter @(

, (&a)e4#ompany a#ti%ities that ma"e the prot a%ailable to target #onsmers e!g!+#hannels- #o%erage- lo#ations- logisti#s- et#! Chapter D(

, (romotion4a#ti%ities to #ommni#ate the merits o$ the prot an& persa&e target#onsmers to by it e!g!+ a&%ertising- personal selling- sales promotion- pbli#relations- et#! Chapter (

that the $irm blen&s to proe the response it 'ants in the target mar"et!

The Mar"eting En%ironment also plays a role &ring the &e#ision ma"ing+


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Marketing Im'&ementation

It is the pro#ess that trns mar"eting strategies an& plans into mar"eting a#tions in or&er toa##omplish strategi# mar"eting ob*e#ti%es!

It nee&s to be )ontro&&e!'hi#h means that the #ompany nee&s to e%alate an& measre thepro#ess an& the reslts o$ the mar"eting strategies an& #orre#t o$ ne#essary to a#hie%e theob*e#ti%es

Marketing au!it

A #omprehensi%e- systemati#- in&epen&ent- an& perio&i# e.amination o$ a #ompany7sen%ironment- ob*e#ti%es- strategies- an& a#ti%ities to &etermine problems an& opportnitiesan& to re#ommen& a plan o$ a#tion to impro%e the #ompany7s mar"eting per$orman#e!

!


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CHAPTER "

$onsumer Markets an! $onsumer Buyer Beha%ior

There are many &i$$erent $a#tors 'hi#h a$$e#t the #onsmer7s byer beha%ior! 0n&erstan&ingthe bying beha%ior is the essential tas" o$ mar"eting management!

$onsumer Buyer Beha%ior

It means the bying beha%ior o$ $inal #onsmers B in&i%i&als an& hosehol&s 'ho by goo&san& ser%i#es $or personal #onsmption!

$onsumer Market

All the in&i%i&als an& hosehol&s 'ho by or a#=ire goo&s an& ser%i#es $or personal#onsmption!

Fa)tors A""e)ting $onsumer Beha%ior

C0LT0RE$u&ture 0re&igion1

, $orms a person7s 'ants an& beha%ior, set o$ basi# %ales- per#eptions- 'ants an& beha%iors learne& by a member o$ so#iety

$rom $amily an& other important instittions!Su6)u&ture 0re&igion1

, grops 'ith share& %ale systems base& on #ommon li$e e.perien#es an& sitationsSo)ia& $&ass 0so)ia&7 more a6out -ea&th or e!u)ation1

, So#iety7s &i%isions 'ho share %ales- interests- an& beha%iors

SOCIALGrou's

, Membership 4e!g!+ so#ial net'or"s(, Re$eren#e 4Aspirational(, So#ial #lasses 4lo'er- 'or"ing- mi&&le an& pper #lass(, Opinion Lea&ers 43)) Mar"eting(

O'inion +ea!er

A person 'ithin a re$eren#e grop- 'ho- be#ase o$ spe#ial s"ills- "no'le&ge- personality- orother #hara#teristi#s- e.erts so#ial in$len#e on others!, Family 4"i&s- mother- $ather spe#ial 'ants an& nee&s(, Roles an& stats


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PERSONALAge an! +i"e )y)&e

, ol&er people ha%e &i$$erent 'ants an& nee&s than teenager- "i&s or mi&&le age people!O))u'ation

, I$ yo are a manager $rom Pors#he $or e.ample or a #leaner at Alber 9i*n in$len#esyor bying beha%ior be#ase o$ &i$$erent in#omes!

E)onomi) situation

, The in#ome le%el+i"esty&e

, A#ti%ities- Interests an& Opinions, Li$estyle segmentation

(ersona&ity an! se&"8)on)e't

, bran& personality 4mi. o$ hman traits+ sin#erity- e.#itement- #ompeten#e-sophisti#ate& an& rgge&ness(

PS/C9OLOGICAL

Moti%ation, I$ a person see"s high satis$a#tion- the moti%ational le%el is %ery high, People o$ten #an7t &es#ribe an& &on7t "no' 'hy they by a #ertain prot

Mas&o-9s (yrami! o" Nee!s

(er)e'tion

, people sele#t- organi)e- an& interpret in$ormation to $orm a meaning$l pi#tre o$ the'orl&

+earning

, #hanges in beha%ior o$ an in&i%i&al be#ase o$ ma"ing e.perien#es an& learn $romthem!

Be&ie"s an! attitu!es

, people ha%e attit&es regar&ing religion- politi#s- #lothes- msi#- $oo& an& almost

e%erything else!, A belie$ is a &es#ripti%e thoght a person has abot something!


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There are "our ty'es o" 6uying 6eha%ior

:# $om'&e2 Buying 6eha%ior

, sitations #hara#teri)e& by high #onsmer in%ol%ement in a pr#hase an&

, signi$i#ant per#ei%e& &i$$eren#es among bran&s 4e!g!+ a #ompter(!

;# Dissonan)e8re!u)ing Buying Beha%ior

, sitations #hara#teri)e& by high in%ol%ement, bt $e' per#ei%e& &i$$eren#es among bran&s 4e!g!+ #arpet(!

# *ariety8seeking Buying Beha%ior

, sitations #hara#teri)e& by lo' #onsmer in%ol%ement, bt signi$i#ant per#ei%e& bran& &i$$eren#es 4e!g!+ salt(

The Buyer De)ision (ro)ess

:#

;#

#

#


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:#Nee! Re)ognitionis the stage in 'hi#h the #onsmer re#ogni)es a problem or nee&!;#In"ormation Sear)his the stage in 'hi#h the #onsmer is arose& to get more in$ormationabot a #ertain prot higher attention to the prot #onsmer may go into a#ti%ein$ormation sear#h!


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Rodger$7 the "uture o" inno%ations


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CHAPTER 9

$ustomer8Dri%en Marketing Strategy

Let s rephrase some o$ the alrea&y abo%e mentione& #on#epts an& terms+

Market Segmentation

1i%i&ing a mar"et into smaller grops 'ith &istin#t nee&s- #hara#teristi#s- or beha%iors 'homight re=ire separate prots an& mar"eting mi.es!

Market Targeting

The pro#ess o$ e%alating ea#h mar"et segment7s attra#ti%eness an& sele#ting one or moresegments to enter!

Di""erentiation

A#tally &i$$erentiating the $irm7s mar"et o$$ering to #reate sperior #stomer %ale!

Segmenting $onsumer Markets

Geogra'hi) Segmentation

1i%i&ing a mar"et into &i$$erent geographi#al nits s#h as nations- states- regions- #onties-#ities- or neighborhoo&s!

Demogra'hi) Segmentation

1i%i&ing a mar"et into grops base& on %ariables s#h as age- gen&er- $amily si)e- $amily li$e#y#le- in#ome- o##pation- eation- religion- ra#e- generation- an& nationality!

(sy)hogra'hi) Segmentation1i%i&ing a mar"et into &i$$erent grops base& on so#ial #lass- li$estyle- or personality#hara#teristi#s!

Beha%iora& Segmentation

1i%i&ing a mar"et into grops base& on #onsmer "no'le&ge- attit&e- se or response to aprot!

Many #ompanies to&ay are sing mltiple segmentation bases in or&er to i&enti$y smaller an&better &e$ine& target grops!

Re=irements $or e$$e#ti%e segmentation+, A##essible 4mar"et segments #an be e$$e#ti%ely rea#he& an& ser%e&(, Sbstantial 4mar"et segments are large or pro$itable enogh to ser%e(, 1i$$erentiable 4segments are #on#eptally &istingishable an& respon& &i$$erently to

&i$$erent mar"eting mi. elements!, A#tionable 4e$$e#ti%e programs(


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(ositioning an! Di""erentiation

(ositioning

Arranging $or a prot to o##py a #lear- &istin#ti%e an& &esirable pla#e relati%e to#ompeting prots in the min&s o$ the target #onsmers!

(ro!u)t (osition

The 'ay the prot is &e$ine& by #onsmers on important attribtes B the pla#e the proto##pies in #onsmers7 min&s relati%e to #ompeting!

So #alle& Positioning Maps help #ompanies to see the #onsmer per#eptions o$ their bran&s

%erss #ompeting prots on important bying &imensions! E.ample+

e!g!+ Mil"

e!g!+ Cars- #lothing- OMO

e!g!+ iPo& se& to be- notanymore to&ay it is mass

e!g!+ Ni"e ma"e yor o'nshoe


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Ea#h #ompany mst &i$$erentiate its o$$er by bil&ing a ni=e bn&le o$ bene$its that appealto a sbstantial grop 'ithin the segment!

The &i$$erentiation an& positioning tas" #onsists o$ three types+! I&enti$ying a set o$ possible #stomer %ale &i$$eren#es that pro%i&e

#ompetiti%e a&%antage pon 'hi#h to bil& a position!D! Choosing the right #ompetiti%e a&%antages!! Sele#ting an o%erall positioning strategy!


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CHAPTER

(ro!u)t7 Ser%i)es7 an! Bran!ing Strategies

(ro!u)t

Anything o$$ere& to a mar"et $or attention- a#=isition- se- or #onsmption that might satis$ya 'ant or nee&!

Ser%i)e

A $orm o$ prot that #onsists o$ a#ti%ities- bene$its- or satis$a#tions o$$ere& $or sale that areessentially intangible 4immateriell( an& &o not reslt in the o'nership o$ anything!

There are three &e%e&s o" 'ro!u)ts an! ser%i)es! Ea#h le%el a&&s more #ostmer %ale+! $ore Bene"it+ 2hat is the byer a#tally bying8 4e!g!+ a pen 'ith 'hi#h yo #an

'rite(D! A)tua& (ro!u)t+ Prot an& Ser%i#e Featres- &esign- a =ality le%el- bran& name-

an& pa#"aging 4e!g!+ a high =ality pen in many %arios #olors a%ailable(! Augmente! (ro!u)t+ O$$ering o$ a&&itional #onsmer ser%i#es an& bene$its 4e!g!+ thepen is a%ailable to by 'ith a pen hol&er or a 'riting pa&(

Than there is the &istin#tion o$ Consmer Prots an& In&strial Prots 4a"a+ 3D3prots(+

:# $onsumer (ro!u)ts

, Con%enien#e Protsprots a #stomer bys sally $re=ently- imme&iately-an& 'ith a minimm o$ #omparison an& bying e$$ort 4e!g!+ soap- #an&y- ne'spapers-$ast $oo&- et#!(!

;# Sho''ing (ro!u)ts

, A goo& 'hi#h the #stomer #ompares to other goo&s 4pri#e- =ality- style- et#!(!, Sele#tion 4e!g!+ se& #ars- $rnitre- #lothing- hotel or airline ser%i#es- et#!(


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(ro!u)t an! Ser%i)e Attri6utes

, Prot


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Bran!ing Strategy Bui&!ing Strong Bran!s

Bran! E,uity

The positi%e &i$$erential e$$e#t that "no'ing the bran& name has on #stomer response to theprot!

3il&ing Strong 3ran&s is a %ery important tas" $or #ompanies! In #hoosing the right bran&strategy the mar"eter nee&s to ma"e &e#isions in+:# Bran! (ositioning

, Attribtes, 3ene$its 4e!g!+ asso#iation 'ith a bene$it a #stomer on#e ha&(, 3elie$s an& ales 4emotional approa#h(

;# Bran! name se&e)tion

, Sele#tion, Prote#tion

# Bran! De%e&o'ment

8 +ine E2tension e.ten&ing an e.isting bran& name to ne' $orms- #olors- si)es-ingre&ients- or $la%ors o$ an e.isting prot

8 Bran! E2tension e.ten&ing an e.isting bran& name to ne' prot #ategories, Mltibran&s introing a&&itional bran&s in the same #ategory, Ne' 3ran&s introing a ne' bran& in a ne' #ategory


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CHAPTER 1;

(ri)ing (ro!u)ts 8 /n!erstan!ing an! $a'turing $ustomer *a&ue

Companies shol& sell %ale- not pri#e7 3e#ase i$ the #stomer per#ei%es the pri#e is agreater than the prot7s %ale- he@she 'ill not by the prot!

Let s rephrase the terms be$ore starting+

(ri)e

The amont o$ money #harge& $or a prot or ser%i#e- or the sm o$ the %ales that#onsmers e.#hange $or the bene$its o$ ha%ing or sing the prot or ser%i#e!

2hat &oes the pri#e &o an& stan& $or a #ompany8, It is the only element 'hi#h proes re%enes!, Most $le.ible element

, Can be #hange& =i#"lyIn setting the pri#e a #ompany mst #onsi&er a nmber o$ e.ternal an& internal $a#torsin#l&ing its o%erall mar"eting strategy an& mi.- the natre o$ the mar"et an& &eman&- anompetitor7s strategies an& pri#es!

There are three !i""erent -aysin setting 'ri)es$or a prot or ser%i#e+

:# *a&ue8Base! (ri)ing

Setting pri#es base& on byers7 per#eption o$ %ale rather than on the seller7s #ost!, 1i$$i#lty here is to measre the per#ei%e& %ale

, Goo&,%ale pri#ing+ O$$ering *st the right #ombination o$ =ality an& goo& ser%i#eat a $air pri#e!, ale,a&&e& pri#ing+ Atta#hing %ale,a&&e& $eatres an& ser%i#es to &i$$erentiate a#ompany7 s o$$ers an& spport higher pri#es!

;# $ost8Base! (ri)ing

Setting pri#es base& on the #osts $or proing- &istribting- an& selling the prot pls a $airrate o$ retrn $or e$$ort an& ris"!

, A&&ing a stan&ar& mar"p to the #ost, Simpli$ying the pri#ing pro#ess, Minimi)ing #ompetition

, Per#ei%e& as more $air $rom both byers an& sellers, Fi.e& Costs+ Costs that &o not %ary 'ith protion or sales le%el!, ariable Costs+ Costs that %ary &ire#tly 'ith the le%el o$ protion!, Total Costs+ The sm o$ the $i.e& an& %ariable #osts $or any gi%en le%el o$

protion!


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CHAPTER 11

(ri)ing (ro!u)ts 8 (ri)ing Strategies

A prot has its o'n li$e,#y#le an& throgh the stages o$ the prot li$e,#y#le the pri#e #an#hange- $or e.ample- a ne' prot starts sally 'ith a high pri#e an& a$ter it is establishe&on the mar"et an& #stomers are not as intereste& in it anymore the #ompany nee&s to a&*stthe pri#e to the nee&s o$ the #onsmer!3t ho' &o they &o so8

Companies #an #hoose bet'een t'o broa& pri#ing strategies+:# Market8Skimming (ri)ing

Setting a high price$or a ne' prot to s"im ma.imm re%enes layer by layer $rom thsegments 'illing to pay the high pri#e the #ompany ma"es $e'er bt more pro$itable sales!

;# Market8(enetration (ri)ing

Setting a low price$or a ne' prot in or&er to attra#t a large nmber o$ byers an& a largemar"et share!

The (ro!u)t Mi2 (ri)ing Strategies

Strategy Des)ri'tion

:# (ro!u)t +ine (ri)ing Setting pri#e steps bet'een prot line itemsExample+ The Men7s sits at three &i$$erent pri#e le%elsa #heap one- mi&&le pri#e& one an& an e.pensi%e sit

;# O'tiona&8(ro!u)t (ri)ing Pri#ing o$ optional or a##essory prots sol& 'ith themain protExample+ iPo& 'ith earplgs

# By8(ro!u)t (ri)ing Pri#ing lo',%ale by,prots to get ri& o$ themExample+ TMAQQ in the 0S gets all the #lothes $rom&esigners $or a %ery #heap pri#e be#ase the ne.t seasonis on an& they nee& the spa#e in their &esigner hoses 4Orthin" o$ the e.ample $rom the boo"- the )oo 'hi#h sells

the poop o$ their animals!(!# (ro!u)t8Bun!&e (ri)ing Pri#ing prots sol& together

Example+ E.pe&ia ses this strategy in o$$ering $lights'ith hotel boo"ing- et#!


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The 5 (ri)e A!@ustment Strategies

Strategy Des)ri'tion

:# Dis)ount (ri)ing Reing pri#es to re'ar& #stomer responses s#h aspaying early or promoting the protExample+ Ot o$ season sales- et#!

:# A&&o-an)e (ri)ing Reing pri#es to re'ar& #stomer responses s#h aspaying early or promoting the protExample+ Trning in an ol& item 4#ar( an& bying thene' prot less the allo'an#e

;# Segment (ri)ing A&*sting pri#es to allo' $or &i$$eren#es in #stomers-prots- or lo#ations 4time,pri#ing- lo#ation,pri#ing-re%ene management(

Example+ E%ian ,liter bottle #osts yo #ents 'hereasthe same 'ater might rn $or D!DJ E0R an on#e 'hen

sol& in ,on#e aerosol #ans as E%ian 3rmisaterMineral 2ater Spray moistri)er


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CHAPTER 12

Marketing $hanne&s an! Su''&y $hain Management

Most #ompanies #an not bring %ale to #stomers by themsel%es! Instea& they mst 'or"#losely 'ith other $irms in a larger %ale &eli%ery net'or"!

*a&ue De&i%ery Net-ork

The net'or" ma&e p o$ the #ompany- sppliers- &istribtors- an& ltimately #stomers 'hopartner7 'ith ea#h other to impro%e the per$orman#e o$ the entire system!

Many #ompanies se interme&iaries to bring their prots to mar"et! They try to $orge amar"eting #hannel 4or also "no'n as &istribtion #hannel(!

Marketing $hanne&

A set o$ inter&epen&ent organi)ations that help ma"e a prot or ser%i#e a%ailable $or se or

#onsmption by the #onsmer or bsiness ser!

Natre an& Importan#e o$ Mar"eting Channels

, Channel #hoi#es a$$e#t other &e#isions in the mar"eting mi., A strong &istribtion system #an be a #ompetiti%e a&%antage, Channels &e#isions in%ol%e long,term #ommitment to other $irms, Nmber o$ #hannel le%els,length+

, 1ire#t Channels 4no interme&iary le%els(, In&ire#t Channels 4one or more interme&iary le%els(


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$on%entiona& Marketing System 0$on%entiona& Distri6ution $hanne&1

A #hannel #onsisting o$ one or more in&epen&ent proers- 'holesalers- an& retailers- ea#hseparate bsiness see"ing to ma.imi)e its o'n pro$its e%en at the e.pense o$ pro$its $or thesystem as a 'hole!

*erti)a& Marketing System 0*MS or a&so kno-n as *erti)a& Distri6ution $hanne&1

A &istribtion #hannel str#tre in 'hi#h proers- 'holesalers- an& retailers a#t as a ni$ie&system! One #hannel member o'ns the others- has #ontra#ts 'ith them- or has so m#h po'erthat they all #ooperate!

$or'orate *MS

A %erti#al mar"eting system that #ombines s##essi%e stages o$ protion an& &istribtionn&er a single o'nership!, Coor&ination an& #on$li#t management are attaine& throgh reglar organi)ational #hannels!

, Channel lea&ership is establishe& throgh #ommon o'nershipE.ample+ Esso an& E..on

$ontra)tua& *MS

A %erti#al mar"eting system in 'hi#h in&epen&ent $irms at &i$$erent le%els o$ protion an&&istribtion *oin together throgh #ontra#ts to obtain more e#onomies or sales impa#t thanthey #ol& a#hie%e alone!, Coor&ination an& #on$li#t management are attaine& throgh #ontra#tal agreements among#hannel members!

Fran)hise organiation

A #ontra#tal %erti#al mar"eting system in 'hi#h a #hannel member- #alle& a $ran#hiser- lin"sse%eral stages in the protion,&istribtion pro#ess!, Most #ommon type o$ #ontra#tal relationship!


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A!ministere! *MS

A %erti#al mar"eting system that #oor&inates s##essi%e stages o$ protion an& &istribtion-not throgh #ommon o'nership or #ontra#tal ties- bt throgh the si)e an& po'er o$ one o$the parties!, Lea&erships is assme& by one or a $e' &ominant members

$hanne& Organiation

=orionta& Marketing System

A #hannel arrangement in 'hi#h t'o or more #ompanies at one le%el *oin together to $ollo' ane' mar"eting opportnity!, Channels at the same le%el 'or" together 'ith #hannel members

Mu&ti)hanne& Distri6ution System

A &istribtion system in 'hi#h a single $irm sets p t'o or more mar"eting #hannels to rea#hone or more #stomer segments!

, Almost e%ery large #ompany an& many small ones &istribte throgh mltiple #hannels, Also #alle& hybri& mar"eting #hannels

$hanging $hanne& Organiation

Disinterme!iation

The #tting ot o$ mar"eting #hannel interme&iaries by prot or ser%i#e proers- or the&ispla#ement o$ tra&itional resellers by ra&i#al ne' types o$ interme&iaries!


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CHAPTER 1!

$ommuni)ating $ustomer *a&ue 4 Integrate! Marketing $ommuni)ation Strategies

3il&ing goo& #stomer relationships nee&s more than *st &e%eloping a goo& prot- pri#ingattra#ti%ely- an& ma"ing it a%ailable to the target #stomers! Companies mst #ommni#atetheir %ale propositions to #stomersCommni#ation mst be planne& an& blen&e& into #are$lly integrate& mar"eting#ommni#ation programs!It is a #r#ial element in a #ompany7s e$$orts to bil& pro$itable #stomer relationships!

The (romotion Mi2 0a&so kno-n as $ommuni)ation Mi21

It is the spe#i$i# blen& o$ a&%ertising- promotion- pbli# relations- personal selling- an& &ire#t,mar"eting tools that the #ompany ses to persasi%ely #ommni#ate #stomer %ale an& bilstomer relationships!This #an be e.presse& in the Commni#ation@Promotion Mi. , FLO2ER+

A!%ertising Any pai& $orm o$ non,personal presentation an& promotion o$ i&eas-goo&s- or ser%i#es by an i&enti$ie& sponsor!

Sa&es (romotion Short,term in#enti%es to en#orage the pr#hase o$ sale o$ a prot orser%i#e

(u6&i) Re&ations 3il&ing relations 'ith the #ompany7s %arios pbli#s by obtaining$a%orable pbli#ity- bil&ing p goo& #orporate image- an& han&ling orhea&ing o$$ n$a%orable rmors- stories- an& e%ents!

(ersona& Se&&ing Personal presentation by the $irm7s sales $or#e $or the prpose o$ma"ing sales an& bil&ing #stomer relationships!

Dire)t Marketing

1ire#t #onne#tions 'ith #are$lly targete& in&i%i&al #onsmers to bothobtain an imme&iate response an& #lti%ate lasting #stomerrelationships 4e!g!+ telephone- &ire#t mail- email- Internet-communicating directl'ith thespeci!ic customer(


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># Ste' $hoosing Me!ia

8 (ersona& $ommuni)ation $hanne&s

T'o or more people #ommni#ate &ire#tly 'ith ea#h other- in#l&ing $a#e to$a#e- on the phone- throgh mail- or email- or e%en throgh an Internet #hat7!2or&,o$,moth in$len#e"u## Mar$eting+Clti%ating opinion lea&ers an& getting them to sprea& in$ormation abot a

prot or ser%i#e to others in their #ommnities!8 Non8'ersona& $ommuni)ation $hanne&s

Me&ial that #arries messages 'ithot personal #onta#t or $ee&ba#"- in#l&ingma*or me&ia- atmospheres- an& e%ents!

# Ste' Se&e)ting the Message Sour)e

, Messages &eli%ere& by highly #re&ible sor#es are more persasi%e!, E.ample+ Kate Moss or any other #elebrity representing a prot

# Ste' $o&&e)ting Fee!6a)k, Re#ognition- re#all- an& beha%ioral measres are assesse&

The ; (romotion Mi2 Strategies

(ush Strategy

It is the promotion strategy that #alls $or sing the sales $or#e an& tra&e promotion to psh theprot throgh #hannels! The proer promotes the prot to #hannel members to inethem to #arry the prot an& to promote it to $inal #onsmers!, Tra&e promotions an& personal selling e$$orts 'hi#h psh the prot throgh the&istribtion #hannels!

(u&& Strategy

It is the promotion strategy that #alls $or spen&ing a lot on a&%ertising an& #onsmerpromotion to ine $inal #onsmers to by the prot! I$ the pll strategy is e$$e#ti%e-#onsmers 'ill then &eman& the prot $rom #hannel members- 'ho 'ill in trn &eman& it$rom proers!, Proers se a&%ertising an& #onsmer sales promotions to generate strong #onsmer&eman& $or prots!


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CHAPTER 1"

A!%ertising an! (u6&i) Re&ations

A&%ertising is a goo& 'ay to in$orm an& persa&e!It rea#hes a large- geographi#ally &isperse& a&ien#e- o$ten 'ith high $re=en#yConsmers per#ei%e a&%ertise& goo& as more legitimate3il&s bran& image1isa&%antage+ Impersonal One 'ay #ommni#ation

Mar"eting managers mst ma"e%our i(portant deci$ion$'hen &e%eloping an a&%ertisingprogram+

:# Setting A!%ertising O6@e)ti%es

A!%ertising O6@e)ti%e

It is a spe#i$i# #ommni#ation ta$kto be a##omplishe& 'ith a spe#i$i# targeta&ien#e &ring

a spe#i$i# perio& o$ ti(e!

De%e&o'ing A!%ertising Strategy

A!%ertising Strategy

It is the strategy by 'hi#h the #ompany a##omplishes its a&%ertising ob*e#ti%es! It #onsists o$t'o ma*or elements+ #reating a&%ertising messages an& sele#ting a&%ertising me&ia!

Creating A&%ertising Message ta"ing into a##ont+, Changing message en%ironment 4people 'ant to #ontrol 'hen or e%en i$ they 'ant to

'at#h #ommer#ial $or e.ample(, Message strategy+

o Creati%e Con#ept #ompelling big i&ea7 that 'ill bring a&%ertising messagestrategy to li$e in a &istin#ti%e an& memorable 'ay!

, Message e.e#tion+o E.e#tion style approa#h- style- tone- 'or&s- an& $ormat se& $or e.e#ting

an a&%ertising message


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Se&e)ting A!%ertising Me!ia

, Rea#hMeasre o$ per#entage o$ people in the target mar"et 'ho are e.pose& to the aampaign &ring a gi%en perio& o$ time(

, Fre=en#yMeasre o$ ho' many times the a%erage person in the target mar"et is e.pose& tothe message(

, Me&ia Impa#tThe =alitati%e %ale o$ a message e.posre throgh a gi%en me&im

Ma@or Me!ia Ty'es

, Ne'spaper, Tele%ision, 1ire#t Mail, Ra&io, Maga)ines

, Ot&oor 42allpaper(, Internet

Sa&es (romotion

, Consists o$ short,term in#enti%es to en#orage the pr#hase or sales o$ a prot or ser%i#e!

$onsumer Sa&es (romotion Too&s

, Samples+ O$$er o$ a trial amont o$ prot, Copons+ Sa%ings 'hen pr#hasing spe#i$ie& prots, Cash re$n&s Rebates7+ re$n& o$ part o$ the pr#hase pri#e by mail, A&%ertising Spe#ialties+ Arti#les imprinte& 'ith an a&%ertiser7s name gi%en as gi$ts

(u6&i) Re&ations 0(R1

(R Fun)tions

, Press Relations, Prot Pbli#ity, Pbli# A$$airs, Lobbying, In%estor Relations, 1e%elopment

summary marketing (1)

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