notes of adv. marketing managment.pdf
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8/14/2019 Notes of Adv. Marketing Managment.pdf
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Meaning:
Marketing management focuseswants, and developing products
Definition: Marketing manage
growing and keeping customersvalue.
What is marketed?
It specifies tangibility spectrum
.Goods Services associate
i. Goods: Goods constitutcars, trucks, television seService can also be assoc
ii. Services: Services inclubakers, lawyers, doctor
variable mix of goods a
consumes both a product
iii. Events: Marketers properformances, and comp
and the World Cup are p
iv. Experiences: An amusecustomers by taking ri
provided by these experiv. Persons: Celebrity mark
people all get help fro
Sachin Tendulkar, Shah
vi. Places: Cities, states, resoftware industry Banga
industry, Karnataka is m
marketing India as a tocampaign.
vii. Organizations: Organizimage in the minds of
organizations, and nonpcompete for audiences an
Eg:Philips Sense and S
viii. Property: Properties arestate) or financial prop
exchanges require marke
institutional and individu
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Marketing management
on satisfying customer requirements by identnd services to meet them.ent is a science and art of choosing target m
by creating, delivering and communicating c
:-
with good. Goods associated with services
the bulk production and marketing efforts. C
s, machine tools, watches, cosmetics etc.iated with goods.
e the work of airlines, hotels, maintenance amanagement consultants. Many market offer
d services. At fast food restaurant, for exam
and a service.ote time based events, such as major trad
any anniversaries. Global sporting events such
omoted.
ment park or a water park represents experies in the amusement park or the water par
nces.ting is a major business. Artists, musicians, Ccelebrity marketers. Celebrities such as A
ukh Khan, Aishwarya Rai are big brand thems
ions, and whole nations compete actively to alore is positioned as the silicon valley of
rketed as One state many words. The Gover
urist destination through the Incredible Indi
ations actively work to build a strong, favor
their target publics. Universities, museums,
rofits all use marketing to boost their publd funds.
implicity campaign.
intangible rights of ownership of either reerty (stocks and bonds). Properties are boug
ting. Investment Companies and banks market
al investors.
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ifying needs and
rket and getting,
stomer superior
Services
ompanies market
d repair people,ings consist of a
le, the customer
shows, artistic
as the Olympics
ntial marketing:enjoy the thrill
Os, high profileitabh Bachchan,
lves.
ttract tourists. Inndia. In tourism
nment of India is
advertisement
ble, and unique
performing arts
c image and to
al property (realt and sold, and
securities to both
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ix. Information: Informatiomarket, and distribute at
Eg: Travel guides, Perio
x.
Idea: Every market indelivering some idea or b
Eg:ideas creting awaren
Marketers and prospects:
A marketer is someone seekingvalues.
A prospect is someone whom th
an exchange of value.When one partly is more active
partly a marketer and second par
Market: The concept of exchan
set of all actual and potential bu
In other words, market is a situat
Eg: Window shopping, e-bay etc
Following are the different t
1.Consumer Markets: Wgifting to another individ
Eg: Cosmetics, shoes etc.
2. Business Markets: Whefor a sale. It is called as
3.Global Market: Whencontinent by altering the
as Global market. The dnegotiating, owing; diff
currencies that might flu
4. Non-profit and Goverorganizations such as
organization need to pri
power. Government purthe absence of extenuatin
5. B-B Market Business6. B-C Market Business7. C-C Market Consume
Marketing
Meaning:Meeting needs profitably of con
exchange and relationship leadpotential buyers of product or se
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n is essentially what books, schools, and uni
price to parents, students and communities.icals, newspapers etc.
ludes a basic idea. Products and services aenefit.
ss about AIDS, discouraging smoking and so o
one or more prospects who might engage in
marketer identifies as potentially willing and
ly seeking and exchange than the other party,
tly a prospect.
ge and relationship lead to the concept of mark
ers of product or services.
ion where sellers and actual and perspective bu
.
pes of market:
en an individual buys product for personal coual for his personal consumption is called as C
n buyer buys the product for a resell or to manuusiness market. Eg: Furniture, PC etc.
ompanies market the product across the cou
product as per the requirement of that specific
cision is made in the face of different requireerent culture, language and legal and politi
tuate in value.
mental Markets: Companies sell their goohurches, universities, charitable institutions
e carefully, because these buyers will have li
hasing calls for bids and buyers often favorsg factors.
o Business Market
o Consumer Marketr to Consumer Market
sumers and organization is called as marketin
to the concept of market. A market is a setvices.
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ersities produce,
re platforms for
n.
an exchange of
able to engage in
we call the first
et. A market is a
ers exist.
nsumption or foronsumer market.
facture a product
tries, across the
market is known
ents for buying,al systems and
ds to non-profitand government
ited purchasing
or lowest bid in
. The concept of
of all actual and
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Define Marketing.
According to AMA, Mark
communicating and delivering
the way that benefits organizaMarketing depends on various c
concepts. Following are the imp
Core Concepts of Marketing
1. Need: -A human need isrequire food, clothing, sh
Types of Needs:a. Stated needs- thb. Real needs- wanc. Unstated needs-d. Delight needs -e. Secret needs- th
2. Wants:-Wants are the forms tak
personality people have
choose product that proviExample: - a human bein
3. Demand:-Given with they wantsthe most value of a satisf
Types of Demand:a. Negative Demand:
it. e.g: Drug (medicin
b. Nonexistent Demane.g: Insurance policy.
c. Latent Demand:Coexisting product. e.g:
d. Declining Demand:e. Irregular Demand:
or even hourly basis.
f. Full Demand: Comarketplace.
g. Overfull Demand:satisfied. e.g: Demar
h. Unwholesome Demundesirable social co
4. Value: Value is a cenand intangible benefi
benefit. It is the relatiquality and services a
Benefit can be fu Cost can be time
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ting is a function and set of processe
a value to customer and managing custome
ion as well as consumer.oncepts so that Phillip kotler states that marke
rtant core concepts of marketing are:
a state of felt deprivation of some basic satisfa
elter, safety, belonging & esteems.
customer wants an inexpensive car.
ts a car with operating cost, not its initial price ithe customer expects good service from the de
ould like the dealer to include an onboard navi
customer wants friends to see him as savvy co
n by human needs has they are shape by cult
lmost unlimited wants but unlimited resource
de the most value & satisfaction for their mone g needs food but wants the burger, French rice,
resources. People demand product with benection.
onsumers dislike the product and may even pae).
:Consumers may be unaware or unintereste
nsumers may share a strong need that cannotCigarettes.
Consumer begin to buy the product less freque
onsumer purchases vary on a seasonal, monthe.g: Bouquet.
sumers are adequately buying all produc
More consumers would like to buy the pro
keting.
and: Consumers may be attracted to prosequences. e.g: Alcohol.
ral marketing concept. It reflects the sum of p
s and costs to customers. It is the relation b
n between what we give and what we get. Vald decreases with price.
ctional benefit and emotional benefit.ost, energy cost and psychological cost.
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s for creating,
relationship in
ing rests on core
ction. e.g. people
s low.ler.
ation system.
nsumer.
ure & individual
. People want to
.& soft drink.
fits that adapt to
a price to avoid
in the product.
e satisfied by an
tly or not at all.
y, weekly, daily,
s put into the
uct that can be
ucts that have
rceived tangible
etween cost and
e increases with
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Value: Benefit
Cost5. Satisfaction: Satisfactperformance in relatioperson is dissatisfied a
satisfied. If it exceeds
6. Segmenting:Dividinpreferences into one g
Different levels of seg
1. Segment Mark2. Niche Marketi3. Local Marketi4. Individual MarBases for Segmen
1. Geographic Se2. Demographics3. Psychographic4. Behavioral Se
7. Targeting:It can be dmarket segment and sEg: Mercedes for high
8. Positioning: It dealsEg: Maggi- in 2minut Volvo for safety.
Marketing Orientations
There are five main alternatives
a. Selling orientation.b.Production orientation.c. Product orientation.d.Marketing orientation.e. Societal Marketing
These are described briefly belo
Selling orientationThe selling concept holds that c
organizations products. The or
promotion effort. e.g. Insurance
Production orientationA production concept is one o
prefer products that are widely
said to be mainly concerneddistribution). By concentrating
maximize profitability by exploexceeds supply and when the pr
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ion reflects a persons judgments of a products
nship to expectations. If performance falls shortnd disappointed. If it matches expectations, the
them, the customer is delighted.
g the market by grouping the customers with sioup is called segmentation.
mentationare:
tingg
g
keting
tation:
gmentation
Segmentation
Segmentationmentation
efined as a concentrating resources and efforts
gments.end people.
ith creating a distinct image in the minds of the
s.
o adopting a marketing orientation. These are:
:
nsumers and businesses, if left alone, wont b
anization must therefore, undertake an aggre
ompany they make policy and make it availab
the oldest concepts in business. It helds tha
available and inexpensive. A production -orie
ith making as many units as possible (masson producing maximum volumes, such a
ting economies of scale. It occurs in a situatiduct cost is too high. .
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perceived
of expectations,customer is
ilar tastes and
n particular
customer.
y enough of the
sive selling and
e to customers.
consumers will
tated business is
production andusiness aims to
on when product
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Product orientationThis is different from a producfavor products that offer the
organizations focus on makingthat is obsessed with its own
products may start out as fully ui-pod. They focuss on product d
Marketing orientation
The marketing orientation emergis not to find right customers fo
marketing orientation holds tha
than competitors in creating, detarget markets.
Holistic marketing
Holistic marketing recognizes tthe development, design and im
that recognizes their breadth and
a. Relationship marketingIt aims to build mutuallyto earn and retain their b
Four key constituents of
Customers Employees Marketing partners(c Members of the finan
b.
Integrated marketingMarketers task is to devi
programs to create, com
c. Internal MarketingInternal marketing is the
want to serve customers
Performance MarketingHolistic marketing incorporates
business from marketing activittheir legal, ethical, social, and en
Financial Accoun
Social Responsibi Social Initiatives Corporate social Cause marketing Corporate philant Corporate comm Socially responsi
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ion orientation. The product concept proposemost quality, performance, or innovative f
superior products and improving them over tiroducts, perhaps even arrogant about how goo
-to-date and technical leaders. e.g.Apple prodvelopment and come with great quality produc
ed with the concept of sense-and-respond phiyour product but to find right product for you
key to achieving organizational goals is bein
livering and communicating superior custome
at everything matters in marketing. The colementation of marketing programmes, proces
interdependencies
satisfying long term relationship with key consiness.
elationship marketing
annels,suppliers,distributers,dealers,agencies)
cial community(shareholders,investors,analyst
se marketing activities and assemble fully inte
unicate, and deliver value of consumers.
task of hiring, training, and motivating able
ell.
performance marketing and understanding t
ies and programs, as well as addressing broavironmental effects.
tability
lity Marketing
arketing
hropynity involvement
le business practices
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that consumersatures. In these
e. The businessd they are. Their
cts like i-phone,ts.
losophy. The jobr customers. The
g more effective
value to chosen
cept is based onses and activities
stituents in order
grated marketing
employees who
e returns to the
er concerns and
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Aging Demand decreases, co
among remaining competitors guntil the markets demise.
Competitive PositionThe five categories for competiti
Dominant This is rare and typresult of bringing a brand-new p
in the market (think Microsoft).
Strong Market share is strongFavorable Your business line e
However, there are many rivals
advantage.
Tenable Your position in the
strong geographic location, or so
overtaking your market share byadvantages.
Weak Theres continual loss o
to maintain profitability.
Step1 : Understand the marke
As a first step, marketers need
within which they operate. Inneeds, wants demands. Howeve
term should be clearly underst
clothing, and survival. Wants arto human wants that are backed
Step2 : Design a customer-dri
To design a winning marketinquestions? What customers will
these customers best(whats our
The company must first decid
segments of customers (market(target marketing)
The company must also decide h
position itself in the market plac
Step 3: Preparing an integrateThe marketer develops an integ
value to target customers. Thethe marketing strategy into acti
tools the firm uses to implement
mix tools into a comprehensivethe intended value to chosen cus
Step 4: Building customer rela
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panies start abandoning the market, the fight
ts too expensive, and companies begin leaving
ve position are as follows:
ically short-lived. Theres little, if any, competioduct to market or having built an extremely st
ften results from a near monopoly or protecte
and stable, regardless of what your competitorsnjoys competitive advantages in certain segme
f equal strength, and you have to work to main
verall market is small, and market share is base
me other product differentiation. Strong compe
building their products and defining clear com
f market share, and your business line, as it exis
ARKETING PROCESS
place and customer needs and wants:
to understand customer needs and wants and
rder to understand the consumer, it is necesr, for a complete understanding of the marke
ood. Need are basic human requirements lik
the needs directed to specific product/service.y buying power.
en marketing strategy:
strategy, the marketing manager must answwe serve (whats our target market)? and H
value proposition)?
who it will serve. It does this by dividing
segmentation) and selecting which segments
ow it will serve targeted customers- how it will
.
marketing plan and program:rated marketing program that will actually del
arketing program builds customer relationshipn. It consists of the firms marketing mix, the
its marketing strategy. The firm must blend al
integrated marketing program that communicomers.
ionships
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for market share
or consolidating
ion, usually aong reputation
leadership.
are doing.ts of the market.
ain your
d on a niche, a
itors are
etitive
ts, is too small
the marketplace
ary to know histing process, the
food, security,
A demand refers
r two importantw can we serve
the market into
it will go after
differentiate and
iver the intended
by transformingset of marketing
these marketing
ates and delivers
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It means the overall process of
delivering superior customer val
Step 5: Capturing value from
The final step involves capturinshare, and profits. By creatin
customers who stay loyal and bu
Step 6: Product planning/ pro
a. Idea generation:- New prsearch for new product ideas.
b. Idea Screening:- This proselecting ones which are feas
c. Concept Development andbelieve to be a feasible idea,
d. Marketing Strategy and Dproduct based on the producthe market?
e. Business Analysis:-The cowill the product be financiall
f. Product Development:- Deensure that the product idea
g. Test Marketing:- Test maproduct will be launched wmonitored and if needed.
h. Commercialization:- If thefor a launch. There are cerproduct is launched. These a
will be launched, etc.
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building and maintaining profitable customer
e and satisfaction
ustomers:
value in return in the form of current and futsuperior customer value, the firm creates
y more. This, in turn, means long run returns fo
uct development
duct development starts with idea generatio
.ess involves shifting through the ideas gene
ible and workable to develop.
Testing:- The organization may have comehowever, the idea needs to be taken to the targe
evelopment:- Designing an initial marketing s
concept. How will the product/service idea be
pany has a great idea, the marketing strategy se
y worth while in the long run?
eloping the product concept into a physical pran be turned into a workable market offering.g.
keting means testing the product within a s
ithin a particular region so the marketing mi
est marketing stage has been successful then th
ain factors that need to be taken into consire timing, how the product will be launched,
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relationships by
ure sales, markethighly satisfies
r the firm.
- the systematic
rated above and
across what theyaudience.
rategy for a new
launched within
ems feasible, but
oduct in order to
ecific area. The
strategy can be
e product will go
eration before ahere the product
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PESTND AnPolitical EnvironmentThe political arena has a huge
power of consumers and other b How stable is the politica Will government policy i What is the government's What is the government's Does the government ha Is the government invol
others?
Demographic Environment
The Demographic forces that m
Marketers are keenly interestednations; age distribution and et
characteristics and movements.Explosive population growth has
mean growing market, unless
companies that carefully analyze
Economic EnvironmentThe available purchasing power
and credit availability. Marketerbecause they cant have a strong i
geared to high- income and pric
Macroeconomic indicators of ththe direction of economic growtreach more meaningful conclusi
The NCAER has classified India
Destitute: Annual housexchange for a wide rang
Aspirants: Annual housconsumption systems to i
Climbers: Annual houswillingness to buy, but h
Consuming:Annual homajority of consumers; h
Rich:Those who have mFor several product categories,
and the number of households wfor companies to introduce new
have just entered the market due
needs to be focused on utilizatio
Social- cultural environment
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alysis Macro Environmental Factors
influence upon the regulation of businesses,
sinesses. Factors such as:l environment?
nfluence laws that regulate or tax your business
position on marketing ethics?
policy on the economy?
e a view on culture and religion?
ved in trading agreements such as EU, NAF
rketer monitor is population, because people m
in the size and growth rate of population in cihnic mix; educational levels; household patte
major implications for business. A growing po
hese markets have sufficient purchasing po
their market can find major opportunities.
in an economy depends on current income, pri
must pay careful attention to trends affecting pmpact on business, especially for companies w
-sensitive consumer.
e country provide the overall health of the ech. A marketer needs to understand the distribuns about taking specific decisions.
n consumers into five categories
holds income of Rs. 16000; not active parti
e of goods.
eholds income of Rs. 16000 22000; newncrease in their real income.
eholds income between Rs. 22000- 45000;ve limited cash at hand
seholds income of Rs. 45000-215000; househ
ave money and are willing to spend.oney and own a wide range of products.he demand is likely to increase as results of
ith greater purchasing power. This gives additiomarket offers that address the needs of new
to their income increase. The marketing strate
these opportunities that are spin-off of the eco
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nd the spending
?
A, ASEAN, or
ake up marketer.
ies, regions, andns; and regional
pulation does not
er. Nonetheless,
e, savings, debt,
rchasing power,ose products are
nomy as well asion of income to
ipants in market
entrants into the
have desire and
lds that form the
rowth in income
nal opportunitiesconsumers who
y for companies
nomic growth.
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Society shapes the beliefs, value
People absorb, almost unconscioto others, to organizations, to so
Some characteristics of social- c1. Persistence of culturalpersistence. Core beliefreinforced by schools, ch
are more open to change.
2. Shifts in secondary cuopen to change, market
potential. Societys majo
a. Peoples viewsthemselves versu
increased dramat
industry was a chb. Peoples views o
we-society. Co
improve their live
c. Peoples viewsorganizations but
companies are li
must.d. Peoples views o
American versu
decade.e. Peoples view o
mastery over nat
However, nature
expected to be sigf. Peoples views
thought-provokin
spiritual journey.
Natural EnvironmentDeterioration of the natural env
have been actively campaignishortage of drinking water in
environmental consciousness.
Some trend analysts labeled the
Shortages of raw mateseriously damaged and n
seriously depleted during
Increased pollution: It ivery serious. Far-sighteproducing environmenta
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, and norms that largely define consumer tastes
usly, a world view that defines their relationshiiety, to nature, and to the universe.
ltural environment are:values: Peoples core beliefs and values have
and values are passed on from parents tourches, business, and government. Secondary
tural values: Since secondary cultural valuers want to spot them and be able to capitali
cultural views are expressed in:
of themselves: People vary in their emphserving others. In the 1980s, personal ambitio
cally, with significant implications for marke
ef beneficiary.others:Observers have noted a shift from a
nsumers are spending more on products and
s rather than their image.
of organizations: People are willing toexpect them to become increasingly socially r
king themselves to worthwhile causes. Hones
society: This orientation influences consumpti
s buying abroad is an issue that will contin
nature: There is a growing trend toward pe
re through technology and the belief that na
is finite. Love of nature and sports associate
nificant trends in the next several years.f the universe: Studies of the origin of m
g ad campaigns are on the rise. Currently, A
This will probably take the form of spiritual in
ironment is a major global problem. Environm
g against pollution causing industries.the vicinity of the plant is an example o
pecific areas of concern were:
ials: Staples such as air, water, and wood pron-renewable such as oil, coal, and various mi
industrial expansion.
s a worldwide problem. Industrial damage to tcompanies are becoming environmentally
lly safe and recyclable or biodegradable go
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and preferences.
ps to themselves,
a high degree of
hildren and areeliefs and values
and beliefs aree on the change
asis on servingand materialism
ting. The leisure
me-society to a
ervices that will
work for largesponsible. Many
y in appeals is a
n patterns. Buy
e into the next
ples feeling of
ure is bountiful.
with nature are
n, religion, and
ericans are on a
dividualism.
entalists in India
eterioration andf the increasing
ducts have beennerals have been
e environment isriendly and areods. The public
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response to these com
especially in third world
Government interventiconcerns to be more prapunishment, seems to b
regulation, marketers shfacing the world.
Environmentally sustaior even demanded that fi
but are also environmenta healthy economy and a
Technological Environment
One of the most dramatic fortechnology has released such wo
It has also released such mixed bMarketer should monitor the foll
Accelerating pace of chyears ago. Electronic res
office connected and mo
Ultimate opportunitiesplace in biotechnology,designer materials.
Varying R&D budgets:are forcing many compa
efforts.
Increased regulation ofpower to investing and bregulations concerning
technological changes.
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anies is encouraging. However, lack of a
ountries, is a major barrier.
n: in natural resource management has caus
ctical and necessary in business and industry.e the best policy for long-term results. Inst
uld help develop solutions to the material and
able strategies: The so-called green movemems produce strategies that are not only environ
lly proactive. Firms are beginning to recognizehealthy environment.
e shaping peoples lives is technology. Thnders as penicillin, open-heart surgery, and the
lessings as cell phones and video games.owing four trends in technology:
ange:many of todays common products werearchers are building smarter chips to make our
e responsive to change conditions.
for innovation: some of the most existing woomputers, microelectronics, telecommunicatio
increasing opportunities emerging ad a result
nies in South Asia to increase their research
technological change:government has expann potentially unsafe products. Marketers shoul
roduct safety, individual privacy, and other
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equate funding,
d environmental
Leadership, notad of opposing
energy problems
t has encouragedmentally friendly
the link between
ough the years,birth control pill.
not available 40cars, homes, and
k today is takingns, robotics, and
of globalization
nd development
ded its agenciesbe aware of the
areas that affect
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An industry is a group of firms
(e.g. the car industry, the travel iSome industries are more profi
dynamics of competitive structuThe most influential analytical
Michael Porter's Five Forces Mo
Porter explains that there are f
industry profitability. These five
The threat of entry of ne The threat of substitutes The bargaining power of The bargaining power of The degree of rivalry bet
Threat of New EntrantsNew entrants to an industry canThe threat of new entrants large
some industries (e.g. shipbuildi
agency, restaurants). Key barrier
Economies of scale Capital / investment requ
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that market products which are close substitut
ndustry).table than others. Why? The answer lies in u
e in an industry.odel for assessing the nature of competition
del, which is described below:
ive forces that determine industry attractiven
"competitive forces" are
competitors (new entrants)
buyers
suppliers
een existing competitors
aise the level of competition, thereby reducingly depends on the barriers to entry. High entr
g) whereas other industries are very easy to
s to entry include
irements
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es for each other
nderstanding the
in an industry is
ss and long-run
its attractiveness.barriers exist in
enter (e.g. estate
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Customer switching cost Access to industry distrib The likelihood of retaliat
Threat of SubstitutesThe presence of substitute prod
they limit price levels. The threa
Buyers' willingness to su The relative price and pe The costs of switching to
Bargaining Power of SuppliersSuppliers are the businesses that
items bought from suppliers (e.gcompany's profitability. If suppl
the company's industry is less att
There are many buyers a There are undifferentiate Suppliers threaten to i
threatening to set up thei
Buyers do not threaten to The industry is not a key
Bargaining Power of BuyersBuyers are the people / organizof buyers is greater when
There are few dominant Products are standardize Buyers threaten to integr Suppliers do not threaten The industry is not a key
Intensity of RivalryThe intensity of rivalry between
The structure of compmany small or equally smarket leader
The structure of incostsencourage competit
Degree of differentiatiohave greater rivalry; ind
less rivalry
Switching costs- rivalrya significant cost associsupplier
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ution channels
on from existing industry players.
cts can lower industry attractiveness and pro
of substitute products depends on:
bstitute
formance of substitutes
substitutes
supply materials & other products into the ind
. raw materials, components) can have a signifers have high bargaining power over a compa
ractive. The bargaining power of suppliers will
d few dominant suppliers, highly valued products
tegrate forward into the industry (e.g. branown retail outlets)
integrate backwards into supply
customer group to the suppliers
tions who create demand in an industry. The
uyers and many sellers in the industry
te backward into the industry
to integrate forward into the buyer's industry
supplying group for buyers
competitors in an industry will depend on:
etition - for example, rivalry is more intense
ized competitors; rivalry is less when an ind
dustry costs- for example, industriesors to fill unused capacity by price cutting
n- industries where products are commoditiesustries where competitors can differentiate th
is reduced where buyers have high switching cated with the decision to buy a product fro
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itability because
stry. The cost of
cant impact on ay, then in theory
be high when:
d manufacturers
argaining power
where there are
stry has a clear
ith high fixed
(e.g. steel, coal)ir products have
osts - i.e. there ism an alternative
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Strategic objectives-rivalry is more intense.
degree of rivalry is less
Exit barriers- when badown factories) - then co
Identifyi
Identifying the CompetitorsWe can examine competition fr
group of firms that offers a pro
Marketers classify industries acpresence or absence of entry,
integration and degree of globali
Using the market approach, coa customer who buys a word pr
be satisfied by pencil, pens or t
set of actual and potential comCoca-cola, focused on its soft dr
and fresh fruit juice bars that cut
Analyzing competitors
After the company has conducarefully, it can focus its attack
weak, close versus distant and g
Strong versus Weak: Mrequires fewer resourcesstrong competitors to
weakness.
Close versus Distant:the most. Chevrolet coidentify distant competit
water, not Pepsi. Museu
Good versus Bad:Everplay by the industrys r
favor a health industry.
large risks they invest in
may find necessary to apractices.
C
A company can gain further ins
the target market: leader, challecompany can take specific actio
Marketing Leader Strategy:
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hen competitors are pursuing aggressive ghere competitors are "milking" profits in a ma
rriers to leaving an industry are high (e.g. thmpetitors tend to exhibit greater rivalry.
g and Analyzing the Competitors
m both an industry and market point of view.
uct or class of products that are close substitu
ording to numbers of sellers degree of produmobility and exit barriers cost structure d
zation.
petitors are companies that satisfy the same cu ocessing software really wants writing ability
pewriters. The market concept of competition
etition in traditional category and industry aninks business, missed seeing the growing mark
into sales of its carbonated beverages.
cted customer value analysis and examinedon one of the following classes of competito
od versus bad.
ost companies aim their shots at weak competi
per share points gained. Yet, the firm should aeep up with the best. Even strong compet
ost companies compete with the competitors thpetes with Ford, not with Ferrari. Yet comprs. Coca cola recognizes that its number one
now worry about theme parks and malls.
industry contains good and bad competitors.les they set prices in reasonable relationship
ad competitors try to buy share rather then
overcapacity and they upset industrial equilibr
ttack its bad competitors to reduce or end th
MPETATIVE STRATEGY
ight by classifying its competitor and itself ac
ger, follower, or nicher.On the basis of this
in line with its current and desired roles.
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owth strategies,ture industry, the
cost of closing
An industry is a
e for each other.
ct differentiationgree of vertical
stomer need. Ex:a need that can
reveals a broader
industry terms.t for coffee bars
its competitorsrs: strong versus
ors, because this
lso compete withitors have some
at resemble themnies should alsoompetitor is tap
ood competitorsto costs and hey
arn it, they take
ium. A company
ir dysfunctional
ording to role in
lassification, the
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Most industries contain an ackn
and usually leads the other ficoverage, and promotion spend
other firms concede its dominanimitate or avoid. Some of the
Microsoft (computer software),To remain number one, leading
expand total demand. Second, th
and offensive actions. Third, thsize remains constant.
Market Challenger Strategies:
Many market challengers have gmust first define its strategic obj
must decide whom to attack.
strategy if the leader isnt servisize that are underperforming a
or arent satisfying customers in
Market Follower Strategy:
Following is not the same as bemust know how to hold current
balance between following cl
following at enough of a distaadvantages to its target market-l
of attack by challenger. Theref
prices low or its product qualityup.
Market- Nicher Strategies:
An alternative to being a follow
Small firms normally avoid cominterest to the large firms. Even
for specific niches. The key ide
the firm must continually credeveloping strength in two or m
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wledged market leader. The leader has the lar
rms in price changes, new-product introducing. The leader may or may not be admired
ce. Competitors focus on the leader as a compbest known market leaders are the Future
tc.firms can take any three actions. First, they
ey can protect their current market share throug
y can try to expand their market share furthe
ained ground or even overtaken the leader. Aective ; most aim to increase market share. Th
ttacking the leader is a high-risk but potent
g the market well. The challenger can attackd underfinanced, have aging products, charge
other ways. Or it can attack small local and regi
ing passive or a carbon copy of the leaders. Austomers and win fair shares of new ones. It
sely enough to win customers from the m
nce to avoid relation. Each follower tries tocation, services, financing. The follower is oft
re, the market follower must keep its manufa
and services high. It must also enter new ma
r in a large market is to be a leader in a small
peting with large firms by targeting small mararge, profitable firms are now setting up busin
in nichemanship is specialization. Because ni
ate new niches, expand niches, and protecre niches, the company increases its chances fo
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est market share
ion, distributionr respected, but
any to challenge,roup (retailing),
an find ways to
h good defensive
, even if market
arket challengern the challenger
ally high-payoff
firms of its ownexcessive prices,
onal firms.
market followerust find the right
arket leader but
bring distinctiveen a major target
turing costs and
ket as they open
market or niche.
ets of little or noss units or brand
che can weaken,
its niches. Byr survival.
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Le
The starting point for segmentat
the mass production, mass districlaims that mass marketing is d
four levels: segments, niches, lo
Segment MarketingA market segment consists of a
Rather than creating the segmeone(s) to target. The company c
service and also can fine-tune t
marketing. e.g.:- automobile co
different features
Niche Marketing
A niche is more narrowly deMarketers usually identify nichliquid detergent from Godrej
Local Marketing
Local marketing reflects a groconcentrate on getting as close a
Much Nikes initial success
marketing such as sponsorship
shoes, clothing and equipment.
Individual Marketing
The ultimate level of segmentati
one marketing. Customizatiocustomized marketing in a wa
offering of their choice. A com
customersby customizing its procredit card, offered by united ba
Bases FSome researchers try to define
Demographic and Psychographidifferent needs or product respo
Geographic Segmentation
Geographic segmentation callsNations, states, regions, countri
unban
Demographic SegmentationIn demographic segmentation, wage, family size, family life
generation, nationality and socia
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els of Market Segmentation
ion is mass marketing. In mass marketing, the
bution, and mass promotion of one product forying. Most companies are turning to micro ma
al areas and individuals.
group of customers who share a similar set of
nts, the marketers task is to identify them aan often better design, price, disclose and deliv
e marketing program and activities to better re
panies in India offer different versions of the
ined customer group seeking a distinctivees by dividing a segment into sub segments.
wing trend called grassroots marketing. Mand personally relevant to individual customers
omes from engaging target consumers th
f local school terms, expert conducted clinics
n leads to segments of one Customized mark
n combines operationally driven mass custhat empowers consumers to design the pro
pany is costomerized when it is able to resp
ducts, services and messages on one-to-one bask limited, Pakistan.
r Segmenting Consumer Marketssegments by looking at descriptive characteris
. Then they examine whether these customerses.
or division of market into different geographies, cities or neighborhoods. e.g Region, City,
e divide the market into groups on the basis ofycle, gender, income, occupation, educatio
l class.
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seller engages in
all buyers. Somerketing at one of
needs and wants.
nd decide whicher the product or
flect competitors
same model with
mix of benefits.e.g.:- EZEE the
keting activitiess possible. e.g.:-
ough grassroots
and provision of
ting or one-to-
tomization withduct and service
nd to individual
is. e.g.:- Galleria
ics: Geographic,
segments exhibit
cal units such asRural and semi
variables such as, religion, race,
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Age and Life cycle staage and life cycle stage
Johnsons baby soap
Life stage: It defines ahome, planning for retire
Gender:Men and womegenetic makeup and parminded and men tend to
Income: Income deterexchange and hence this
Generation:Each generthe music, movies, politi
Social class:Social clashabits and retailers. The
Psychographic Segmentation (
In Psychographic segmentatio
psychological/ personal traits, li
The four groups with higher reso
Innovators- successful,esteem.
Thinkers- mature, satisvalue order, knowledge,
Achievers-Successful, g Experiencers- Young, e
The four groups with lower reso
Believers- Conservative, Strivers- Trendy and fun-
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e:Consumer wants and abilities to change wits are important variables to define segments
ersons major concern, such as getting marriedment so on.
n have different attitudes and behave differentltly on socialization. e.g.:- women tend to bee more self-expressive and goal directed.
ines the ability of consumers to participat
is a basic segmentation variable.
tion is profoundly influenced by the times in w s and defining events of that period.
has a strong influence on preferences in cars,oncept of social class in India is influenced by
ALS Value and Lifestyle Segment)
, buyers are divided into different groups
e styles, or values.
urces
sophisticated, active, take-charge people
ied, and reflective people who motivated by
nd responsibility.
oal oriented people who focus on career and fa
thusiastic, impulsive people who seek variety arces
conventional, and traditional people with conce
loving people who are resource constrained.
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age. Therefore,.g.:- Johnson &
, deciding to buy
, based partly onmore communal
in the market
hich it grows up-
clothing, readinghe caste system.
on the basis of
with high self-
ideals and who
ily.
nd excitement.
ntrate beliefs.
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Makers- Practical, dowhands.
Survivors- Elderly, passiBehavioral SegmentationIn behavioral segmentation, mar
of, attitude toward, use of, or res
Decision Roles- peoplebuyer, and user.
Behavioral variableso Occasions- greet
different occasion
o Benefits- Targeteo User status-ever
and regular user.
o Usage rate- marusers.o Buyers- readines
aware, some are iintend to buy.
o Loyalty status Hard core Split loyal Shifting l Switchers
o Attitude- five atnegative, and hos
Bases fDemographics
Industry Company size Location
Operating variables
Technology User or nonuser status Customer capabilities
Purchasing approaches Purchasing-function Power structure Nature of existing relatio General purchasing polic Purchasing criteria
Situational factors
Urgency
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-to-earth, self-sufficient people who like to
e people who are concerned about change.
keters divide buyers into groups on the basis o
ponse to a product.
lay five roles in a buying decision: initiator, in
ing card brands such as Archies and Hallmar
s.d at people who seek different sets of benefits.
y product has its nonuser, ex-user, potential us
kets can be segmented into light, medium, an
s stage- some people are unaware of the pr
nformed, some are interested, some desire the p
loyals- consumers who buy only one brand alls- consumers who are loyal to two or three bra
yals- consumers who shift loyalty from one bra
consumers who show no loyalty to any brand.
itudes about products are: enthusiastic, posi
ile.
or Segmenting Business Markets
nship
ies
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work with their
their knowledge
luencer, decider,
make cards for
r, first time user
d heavy product
oduct, some are
roduct, and some
he timeds
nd to another.
tive, indifferent,
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Specific application Size order
Personal characteristics
Buyer-seller similarity Attitude towards risk Loyalty
Market Targeting
There are many statistical tec
identified its market segments o
Effective segmenting criteria
Measurable:The size, pmeasured.
Substantial:The segmenthe largest possible hoprogram.
Accessible:The segment Differentiable:The seg
different marketing-mix
Actionable:Effective proSteps involved in segmentation
Single segment concentr Selective specialization Product specialization Market specialization Full market coverage
POSITI
Product Position And PositioniThe way the product is define
occupies in consumers minds reEg.1.Dalda positioned as a demo
The act of designing the compan
of target market is called as the
Positioning Is RequiredAs a marketer, it is your opportu
Clear and meaningfuladvertising and marketinpositioning gives your m
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niques for developing market segments. On
portunities, it must decide how many and whic
urchasing power, and characteristics of the
ts are large and profitable enough to serve. A sogeneous group worth going after with a ta
can be effectively reached and sevred
ents are conceptually distinguishable and resplements and program
gram can be formulated for attracting and servi
process
tion
NING & POSITIONING STRATEGY
ng Of A Productd by consumers on important attributes- the
lative to competing products is called as the prnstration of maternal love.
ys offering and image to occupy a distinctive
ositioning of a product.
nity to influence the markets perception of you
product positioning also helps you cut th g noise of the market place, in your consume
ssage some context so they can be better heard
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ce the firm has
ones to target.
egments can be
gment should beilored marketing
nd differently to
g the segments
lace the product
oduct position.
lace in the mind
r products.
rough relentlessrs mind, productand accepted.
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A product's life cycle (PLC) cgenerated by the product. If a cu
of many different shapes, an exaProduct Life Cycle Curve
The life cycle concept may appl
short as a few months for a fagasoline-powered automobile.
Product development is the in
the firm prepares to introduce
changes in the marketing mix uand opportunities.
Introduction Stage
When the product is introduced,and its benefits. During the i
associated with the initial distrib
volume usually make the introdstage, the primary goal is to est
Marketing Strategies for Intro
Product -one or few Price -Generally hi
the early adopters bquickly. In some cas
are set low to gain m
Distribution - Distimplementation of th
Promotion - Promoincentives may be di
intended to convince
Growth StageThe growth stage is a period of
aware of the product and its b
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Product Life Cyclen be divided into several stages characterizeve is drawn showing product revenue over tim
mple of which is shown below:
y to a brand or to a category of product. Its du
item or a century or more for product categ
ubation stage of the product life cycle. There
the product. As the product progresses throu
sually are required in order to adjust to the ev
sales will be low until customers become awatroductory stage the firm is likely to incur
tion of the product. These higher costs couple
ction stage a period of negative profits. Durinblish a market and build primary demand for t
uction Stage are
products, relatively undifferentiated
h, assuming a skim pricing strategy for a highy the product and the firm seeks to recoup ds a penetration pricing strategy is used and in
rket share rapidly.
ribution is selective and scattered as thedistribution plan.
tion is aimed at building brand awareness.ected toward early adopters. The introductory
potential resellers to carry the product.
apid revenue growth. Sales increase as more c
nefits and additional market segments are ta
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by the revenue, it may take one
ration may be as
ries such as the
are no sales and
h its life cycle,
lving challenges
re of the productadditional costs
with a low sales
the introductionhe product class.
profit margin asvelopment costs
troductory prices
irm commences
Samples or trialromotion also is
stomers become
rgeted. Once the
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product has been proven a succ
as more retailers become intedistribution at this point. When
growth stage, there may be priconvince consumers that the fi
growth stage, the goal is to g
strategy may be modified as fo
Product -New product f Price - Maintained at a
customers.
Distribution - Distributresellers show a strong in
Promotion- Increased aMaturity Stage
The maturity stage is the most pso at a slower pace. Because bra
Competition may result in dec
encouraging competitors' custonon-users into customers. Sales
product more shelf space over c
to maintain market share andinclude:
Product - Modificationsproduct from competing
Price - Possible price red Distribution - New distlosing shelf space. Promotion- Emphasis o
competitors' customers t
Decline StageEventually sales begin to dec
technologically obsolete, or cust
the profitability may be maintainvolumes and eventually no more
During the decline phase, the fir
Maintain the product in h Harvest it, reducing mark Discontinue the product
The marketing Strategy may b Product - The number
surviving products to ma
Price - Prices may be lmay be maintained for co
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ss and customers begin asking for it, sales wil
rested in carrying it. The marketing teamcompetitors enter the market, often during the
ce competition and/or increased promotionalm's product is better than that of the compet
ain consumer preference and increase sales.
lows:
eatures and packaging options; improvement of
high level if demand is high, or reduced to c
ion becomes more intensive. Trade discountterest in the product.
vertising to build brand preference.
ofitable. While sales continue to increase into td awareness is strong, advertising expenditure
eased market share and/or prices. The firm
ers to switch, increasing usage per customerpromotions may be offered to encourage ret
mpeting products. During the maturity stage, th
extend the product life cycle. Marketing mi
are made and features are added in order to
roducts that may have been introduced.
uctions in response to competition while avoidi
ribution channels and incentives to resellers i
n differentiation and building of brand loyalty.switch.
ine as the market becomes saturated, the
omer tastes change. If the product has develop
ed longer. Unit costs may increase with the decprofit can be made.
generally has three options:
opes that competitors will exit. Reduce costs an
eting support.hen no more profit can be made or there is a s
e modified as follows:of products in the product line may be red
e them look new again.
owered to liquidate inventory of discontinuedntinued products serving a niche market.
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l increase further
ay expand thelater part of the
osts in order totion. During the
The marketing
product quality.
apture additional
are minimal if
is stage, they dowill be reduced.
laces effort into
, and convertingilers to give the
e primary goal is
decisions may
differentiate the
ng a price war.
n order to avoid
Incentives to get
roduct becomes
ed brand loyalty,
lining production
d find new uses
ccessor product.
ced. Rejuvenate
products. Prices
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Distribution - Distribuprofitable are phased out.
Promotion - Expenditucontinued products.Limitations of the Product Lif
The term "life cycle" impliesproducts do not have such a p
different products vary substanti
the forecasting of product sales.Nonetheless, the product life cyc
strategies to address the challe
monitoring sales results over ticycle.
Styl
Three special categories of profads.
Style: A Style is a basic and
endeavor. Styles appear in homand art (realistic, surrealistic, a
vogue.
Fashion: A fashion is a curre
through four stages: distinctivefashion cycle is hard to predict.
cycle depends on the extent to
trends in the society, satisfies
limits as it develops.
Fads: Fads are fashions that coearly, and decline very fast. T
limited following of those whofrom others. They often have a
Fads do not survive because the
are those who recognize fads earsuccess story of a company that
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tion becomes more selective. Channels tha
res are lower and aimed at reinforcing the
Cycle Concept:-
well-defined life cycle as observed in livinredictable life and the specific life cycle cur
ally. Consequently, the life cycle concept is n
le concept helps marketing managers to plan al
ges that their products are likely to face. It
e and comparing them to those of products ha
e, Fashion, and Fad life cycles
uct life cycles should be distinguishedstyl
istinctive mode of expression appearing in
s (colonial, ranch, Cape Cod); clothing (formastract). A style can last for generations, and
tly accepted or popular style in a given fiel
ness, emulation, mass-fashion, and decline.illiam Reynolds suggests that the length of a
hich the fashion meets a genuine need, is con
ocietal norms and values, and does not exce
me quickly into public view, are adopted witheir acceptance cycle is short, and they tend
are searching for excitement or want to distinnovel or capricious aspect, such as body pierci
y do not normally satisfy a strong need. The m
ly and leverage them into products with stayinganaged to extend a fad's life span.
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no longer are
brand image for
organisms, butves followed by
t well-suited for
ernate marketing
lso is useful for
ing a similar life
s, fashions, and
field of human
l, casual, funky);go in and out of
. Fashions pass
The length of aarticular fashion
istent with other
ed technological
great zeal, peakto attract only a
uish themselvesng and tattooing.
arketing winners
power. Here is a
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New Stage 1: Idea Generati
search for the ideas. Id
scientists, competitors, erequired for the idea geNirlep non stick cookwa
cookware.
Stage 2: Idea Screening Promising ideas Marginal ideas Rejected ideas
In this process care must
A drop error It A go error In t
Stage 3: Concept Develidea expressed in meaniconcept we will consider
powder to add to the m
turned into several concwhat primary benefits sh
Concept 1 Anutritious breakfa
Concept 2- A ta Concept 3 a he
Each concept defines co
It involves presentintheir reaction. This isreality to test the c
surveys. Elaboration of our pr
Our product is a pow
that gives the persoconvenience. The pr
strawberry ) and wou
Consumer will respo Are benefits c
Do you see th Do other prod Is price reaso Would you bu Who would u When and ho
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Product Development Processon The development process starts with ideeas can come from many sources like cust
ployees, channel members and top managemeration the most important stimulus can be nre ( requirement of quickly heated less oil co
-this is nothing but sorting the ideas into three
taken to avoid the following errors
occurs when a good idea is dropped.
is case a poor idea may move to the product de
opment and Testing Concept is an elaboratgful consumer terms. Concept development following example.e.g.A company gets the id
lk to increase its nutritional value and taste.
pts by giving answers to the questions likeould the product provide ? And when people wi
instant breakfast drink for the adults wh
st without preparing breakfast.
sty snack drink for children to drink as middaylthy supplement for older adults to drink befor
petition. The company should decide which th
the product concept to appropriate target consdone symbolically or physically. Small plastic
ncepts. This is carried out using focus gro
duct for the survey.
dered mixture that is added to milk to make an
n all the needed nutrition along with goododuct would be offered in three flavors (Ch
ld come in individual packets, six in box at Rs.
d following questions after reviewing the abov
lear to you and believable?
is product solving a problem or filling a need yucts currently meet this need and satisfy you?
able in relation to value?y the product?
e the product?
often will the product be used?
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a generation andmers, suppliers,
nt etc. Stimuli ised or want. e.g.sumption pan or
categories.
velopment stage.
ed version of theto elaborate thisa of producing a
his idea can be
ho will use it?,ll consume it ?
wants a quick
efreshment .they go to bed.
feasible one is.
umer and gettingmodels or virtual
p interviews or
instant breakfast
taste and highocolate, Vanilla,
18 per box.
information.
u have?
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Conjoint Analysis A methodfor derivinproduct attributes. At
relative importance oStage 4: Marketing Strategy Dev Top management mu
the new product into
The plan consists of t Target market size, st
500,000 cases with l
planned profits of Rs.
Second part outlinese.g. Six packets to aoffered 1 free case fo
newspapers etc., ad.
Third part describes tand subsequent years.
Stage 5: Business Analysis
To study the proposaprojections to deter
concept can move to
Estimating total salereplacement sales anpurchase , infrequent
Stage 6: Product Development
In this stage detailed tecproduced at costs. Work
attributes of the product
prototype. Developing amonths and even years.
This stage involves follo1. Developing attributes2. Product development3. Legal and regulatory4. Production requireme
Stage 7: Product Use Testing After prototype is ready t
tests. It is done using tec Product testing helps in
1. Comparing new prod2. Knowing performanc3. Ensuring that the pro4. Finding out how cust5. Customers preferenc6. Reasons for dissatisfa
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g the utility values that consumer attach to vartributes like package design, prices, brand nam
each attribute to the consumer is studied.lopmentst develop a preliminary marketing strategy plamarket.
hree parts.
ructure and behavior e.g. the company will aioss not exceeding Rs. 25 lacs, second year 70
10 lacs.
the planned price, distribution strategy and
box and 48 boxes to a case., for 1sttwo mont
r every four cases purchase, coupon for 10 %
xpenses
he long term sales and profit goals e.g. market.
ls business attractiveness, for that they prepareine whether they satisfy company objective
he product development stage.
Total estimated sales are the sum estimat
repeat sales. It depends upon whether the prpurchase or frequently purchased.
nical analysis is conducted to know whether ting model is developed which reveals tangib
s . It is job of translating customer requirem
d manufacturing a successful prototype can t
ing functions.
of the new products.schedule.
issues regarding the new product.
nt for developing the new product.
hey must be put through rigorous functional tes
niques like Alpha testing, Beta testing, and Ga
cts with existing ones.
e safety, acceptability of features like colours, s
uct perceived as intended.mers uses the products
s
ction.
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ing levels of thee. In this method
n for introducing
m initially to sell0,000 cases with
arketing budget.
s dealers will beff will appear in
share for 1styear
sales, cost profit. If they do the
d 1st time sales,
duct is one time
e product can bee and intangible
nt into working
ke days, weeks,
s and customer
ma testing.
ize, weights etc.
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Stage 8: Test Market
In this stage the companthe product and giving it
promotional campaign.1. How many test cities2. Which cities?3. Length of test4. What information?5. What action to take?
Stage 9: Commercialization The results of test mark
marketing mix before entproduction, distribution
guarantees, warranties, re
The company also has toconcerned.
1. When to launch? fi2. Where to launch?- G3. To whom to market?4. How to market?
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chooses few cities. Sales force tries to sell thea good shelf exposure. Company put on full ad
arketers need to decide on following issues
ting help marketers decide the changes that a
ering the market. It also helps the marketer decistrategy, selling efforts and other issues
placement services etc.
answer following question as far as launching
st entry against the competitor , parallel entry o
ographical location
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rade on carryingertising and
re needed in the
de the amount oflike providing
of the product is
r late entry.
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What is product?
Product is anything that can begoods, services, experiences, ev
ideas.
Explain the different levels ofThe marketer needs to address fi
five constitute a customer value
I. Core benefit : Thecustomer is really bu
purchaser of a drillproviders.
II. Basic product: At tbasic product. Thus fdresser, and closet.
III. Expected product:set of attributes and
product. For exampland a relative degree
IV. Augmented producproduct that excepositioning and com
markets such as Ind
expected product levV. Potential product
encompasses all the
offering might under
to satisfy customers a
Classification of product
It is classified on the basis of du
I. Durability and t Nondurable
few uses, suc
frequently, t
locations, chaand build pref
Durable goorefrigerators,
more personamore seller gu
Service : ThAs a result, t
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ffered to a market to satisfy a want or need, ients, persons, places, properties, organization,
roductve product levels. Each level adds more custo
ierarchy.
undamental level is the core benefit, the servi
ing. For example : A hotel guest is buying res
is buying holes. Marketers must see them
he second level, the marketer must turn the co
r example, a hotel room includes a bed, bathro
At the third level, the marketer prepares an exp
conditions buyers normally expect when th
, hotel guest expect a clean bed, fresh towels,of quiet.
: At the fourth level, the marketer prepar
eds customer expectations. In developedpetition take place at this level. In developi
ia and Brazil, however, competition take pla
l.: At the fifth level stands the potential
possible augmentations and transformations
go in the future. Here is where companies sear
nd distinguish their offering.
rability, tangibility and use.
ngibility classification
oods: They are tangible goods normally consh as soft drinks and soaps. Because these goo
e appropriate strategy is to make them av
rge only a small markup, and advertise heavierence.
s : These are tangible goods that normally sumachine tools, and clothing. Durable products
l selling and service, command a higher maarantees.
y are intangible, inseparable, variable and perhey normally require more quality control, su
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cluding physicalinformation, and
er value, and the
ce or benefit the
t and sleep. The
elves as benefit
re benefit into a
m, towels, desk,
ected product , a
y purchase this
working lamps,
s an augmented
ountries, brandg and emerging
e mostly at the
product, which
the product or
ch for new ways
med in one or as are purchased
ailable in many
y to induce trial
vive many uses:normally require
gin, and require
ishable products.pplier credibility
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and adaptabil
repairs.
II. Consumer-good
Convenientthe require
buy these timpulse goo
(rain coats,
These prodneed to mak
Shoppingthe basis of
efforts to bcars, and m
Specialtyidentificatio
special purwill travel f
Unsoughtdoes not no
personal-sel
III. Industrial goods Raw mat
product co
For exampl
Manufactcomponentmotors, tir
Capital gomanaging
equipment.
equipment
Process messential fo
Consumaand they ar
Factory eincludes pother offic
Other serservices t
Businessadvisory se
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ity. Examples include haircuts, legal advic
classification
goods : The products which consumer frequent is immediate and the consumers makes mi
pes of product. For example, soft drinks, sods (chocolates, candy bars, potato chips, etc.),
weaters, etc.).
cts are placed where consumers are likely to ee a purchase.
oods: They are goods that the consumer makprices, quality, and style. Here the consumer
y these types of product. For example, furnitujor appliances.
oods : These goods have unique charactn for which a sufficient number of buyers are
hasing effort. For example, cars, house, etc.r to buy the product.
oods :Those goods which consumer does nrmally think of buying. These products requir
ling support. For example, smoke detectors, life
classification
rial : These are the goods which enter th
pletely. These mainly consist of farm goods a
e, wheat, cotton, crude petroleum, iron ore, etc.
ring material and parts : These fall into twmaterial (iron, yarn, cement, wires) and comp
s, castings).
ods : These are long lasting goods that facilithe finished product. They include two groups
Installation consist of building (factories, of
.
terial: These goods dont become part of finr processing. For example, oils, coolers, etc.
le goods: These are small parts of the final ore bought regularly. For example, nails.
uipments : These equipments used to make firtable factory equipments and tools (hand toolequipments (personal computers, desks).
ices : Supplies and business services are shorat facilitate developing or managing the
ervices include maintenance and repair srvices.
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and appliance
ntly purchases,nimum efforts to
aps, newspapers,mergency goods
perience an urge
s comparison onakes maximum
e, clothing, used
ristics or brandilling to make a
Here consumers
t know about oradvertising and
insurance, etc.
manufacturers
d natural goods.
o categories ,i.e.nent parts (small
te developing or: installation and
ices) and heavy
l product but are
inished products
nal products ands, lift trucks) and
term goods andinished product.
rvices, business
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Product hierarchy
The product hierarchy stretchescan identify six levels of the pro
Need family : The core need tsecurity, fabric care system.
Product family : All the preffectiveness. For example, savi
Product class : A group of pro
functional coherence. Also knorelated because they perform a
marketed through the same outl
may consist of different brands,extended. For example, life insu
Product type :A group of item
the product. For example, term li
Item :A distinct unit within a b
some other attribute. For exampl
Brand Identity
Brand Identity includes brandpersonality, brand toons etc. A
positive associations with the br
in, what benefits it provides anemotion, culture and myth to b
Jello), a character (Pink Panther)
Tools used for Building BrandBrand builders use a set of to
typically exhibit an owned word,
Owned Word :A strongis the list of brands that o
SloganMany companies succes
repeated in every ad theon the street may easily r
Colors: It helps for a cobrand recognition. Catercolor of Kodak film. IB
Symbols and LogosCompanies would be wise tcompanies hire a well-kno
brand. Nike uses Michael
advertise its shoes. Sporting
their symbols, even naming t
Cartoons and AnimatioA less expensive approach iscustomers mind. The adver
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rom basic needs to particular items that satisfyuct hierarchy,
at underlines the existence of a product fami
duct classes that can satisfy a core needgs and income.
ducts within the product family recognized as
wn as a product category. For example, finasimilar function, are sold to the same cust
ts or channels, or fall within given price range
or a single family brand, or individual brand tance.
within a product line that share one of several
fe insurance.and or product line distinguishable by size, pric
e, ICICI Prudential renewable term life insuran
names, logos, positioning, brand associatgood brand name gives a good first impres
and. A positioning statement tells what busines
why it is better than the completion? Brandand identity by the use of a famous spokesper
, an animal (the Merrill lynch bull) etc.
Identity?ls to strengthen and project the brand imag
a slogan, a color, a symbol, and set of stories.brand name should trigger another word, a fav
wn a word
sfully added a slogan or tagline to their bran
use. Here are some well-known brands slogacall or recognize:
mpany or a brand to use a consistent set of c
illar paints all its construction equipments yelluses blue in its publications, and IBM is calle
adapt a symbol or logo to use in their commn spokesperson, hoping that his or her qualit
Jordon who has worldwide recognition an
goods manufacturers sign contracts with top at
he product after them.
nsto develop a character, animated, to etch the bising agency Leo Burnett has successfully cre
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those needs. We
ly. For example,
with reasonable
having a certain
cial instrumentsmer groups, are
s. A product line
hat has been line
ossible forms of
e, appearance, or
e.
ons, and brandsion and evokes
s the company is
personality addsson (Bill Cosby-
; Strong brands
orable one. Here
name which is
ns, which people
lor to and in the
w. Yellow is theBig Blues.
nications. Manyy transfer to the
likableness, to
hletes to serve as
ands image intoted a number of
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memorable animated charac
may recognize:
Objects: Still another apThe travelers insuranceequivalent to having an
company features the rocto owing a peace of ro
developed many logos oway the brand name is w
Measuring Brand Effectivenes
There are many metrics to me
simplest way is to apply the c
distinctiveness, defendable, digit
Distinctiveness: your brall spoken and visual coThe more unique and d
competitive strength itdistinctiveness of your br
Differentiation: the braclearly articulate the spec
Defendable: you will bbrand must have proprie
Company
ICICI Pruden
Amul Butte
McDonalds
All Out mosquito
Pillsbury
7 Up
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ters. Here are some well known brand cartoo
proach is to choose an object to represent a c
company uses an umbrella, suggesting that buumbrella available when it rains. The pru
k of Gibraltar, suggesting that buying an insurack which is of course, solid ad dependable.
r abstracts, which are easily remembered byitten makes a brand recognizable and memorab
sure the potential of and actual effectivenes
ncept of what we call the 4 Ds of Brandin
-able.
nd should be distinct when compared to your c
mmunications to which your target audiencesistinct your communications, the wider the
will have. There are simple means to aand.
d strategy and brand assets must set youre oific positioning intent of your offering.
investing in creating your brand assets andtary strength to keep others from using close
Cartoon or Animatio
ial
r
epellent
Chintamani
Utterly Butterly Girl
Ronald
Louis
Doughboy
Fido Dido
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ns which people
mpany or brand.
ying insurance isential insurance
nce is equivalentCompanies have
eople. Even thele.
of brands. The
; differentiation,
mpetitors and to
will be exposed.iled of effective
ply to test the
ffering apart and
in all cases yourapproximations.
n
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This applies to your trad
symbols and other visual
Digit-able: in most bucommunications and cotactile and electronics for
Define the Brand: Any indexperiences, beliefs, perception
Coca-Cola is a company brand,
A Product from a known source
Choosing a Brand Name
A brand name first must be ch
through brand identity work. In
positioning of the brand. In
possibilities: it could choose nairlines), quality (Safety stores,
Among the desirable qu It should suggest somethi It should suggest product It should be easy to pr
recognize the product to
It should be distinctive. It should not carry poor Building Positive Associ
The best known brand names ca
say they associate with McDonal
Kids Fun Happy Meal Ronald Mc. Donald Quality Toys
In trying to build a rich set
consider five dimensions that ca
Attributes: A strong bMercedes automobile att
and expensive. If a carbrand.
Benefits: A strong bratriggers the idea of well
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e names and other proprietary words as well
assets.
sinesses there is strong and growing eleme
merce that dictate all brand assets be leveram. This goes for all brand assets.
vidual a brand (in his mind) is a complexand associations that have grown up over ti
product brand, a service brand and a brand wit
is brand.
osen then its various meanings and promises
choosing a brand name, it must be consiste
naming a product or service the company
me of the person (Honda, Calvin Klein), loealthy choice), or an artificial name (Exxon, K
alities of a brand name. Some are:
ng about the product benefits.
qualities such action or color
nounce, recognize and remember; short na
he customers.
eanings in other countries and languages etc.
ationsrry associations. For example, here is a list of
ds:
f positive associations for a brand, the bran
communicate meaning:
and should trigger in buyers mind certain aributes a picture of well-engineered car that is
brand does not trigger any attribute, then it
d should suggest benefits, not just features.
erforming car that is enjoyable to drive and pre
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s to your logos,
nt of electronic
ed effectively in
combination ofe. For example
h a long history.
must be built up
t with the value
may face many
ation (Americanodak).
es help a lot to
ords that people
builder should
tributes. Thus adurable, rugged
ould be a weak
Thus Mercedes
stigious to own.
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Company Values: A strMercedes is proud of its
efficient in its operations
mind of the buyers about Personality: A strong b
were a person we would
somewhat authoritarian.personality.
Users:A strong brand swould expect Mercedes t
Brand Element Choice CriteriThere are six criteria in choosin
building in terms of how brand
The latter three are more defensi
brand element can be leveragconstraints.
Memorable:How easiltrue at both purchase and
Meaningful: To whatcorresponding category?
of person who might use
Likeability: How aestheinherently likeable visua
Wheel, Sunsilk etc evoke
Transferable: Can a brdifferent categories? Togeographic boundaries a
Adaptable: How adaptamakeovers through the y
Protectable: How legaprotectable? Can it be eawith product categories s
and not become generic.
Brand Equity: There is no un
different things for different cothree distinct elements:
The total value of a bransheet.
A measure of the strengt A description of the asso
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ong brand should connote values that the comngineers and engineering innovations and is ve
. The fact that it is a German company adds mo
the character and the culture of the brand.rand should exhibit some personality traits.hink of someone who is middle age, serious, w
f Mercedes were an animal we might think of l
hould suggest the type of people who buy theo draw buyers who are older, affluent and profe
g brand element. The first three can be chara
equity can be build through judicious choice
ve and are concerned with how the brand equit
ed and preserved in the face of various o
is the brand element recalled? How easily reconsumption? Short brand name like tide, Nike
extent is brand element credible and su
Does it suggest something about a product in
the brand?
tically appealing does consumers find the brally, verbally, and in other ways? Concrete bra
much imagery.
nd element be used to introduce new product
what extent does the brand element add to brd market segments?
le and updatable is the brand element? Bettyars-although she is 75 yrs old, she doesnt look
lly protectable is the brand element? Hosily copied? It is important that names that becuch as Kleenex, Xerox, Jell-O, etc retain their
iversally accepted definition of brand equity.
panies and products. More over Brand equity
as a separable asset -- when it is sold or inclu
of consumers' attachment to a brand.iations and beliefs the consumer has about the
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any holds. Thusry organized and
re pictures in the
hus if Mercedesll-organized and
ion or its implied
brand. Thus wessional.
terized by brand
f brand element.
contained in the
pportunities and
ognized? Is thiscan help.
ggestive of the
redient or a type
d element? Is itd names such as
s in the same or
nd equity across
orker received 8a day over 35.
w competitivelyme synonymousrademarks rights
The term means
an be defined as
ed on a balance
rand
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Branding benefits buyers a
To Buyer:
1. Help buyers identify the2. Identify marketer3. Helps reduce the time ne4. Helps buyers evaluate
characteristics.
5. Helps reduce buyers per6. Buyer may derive a p
Mercedes.
To Seller:
1. Differentiate product2. Helps segment marke3. Brand identifies th
customers.4. Reduce price compar5. Brand helps firm intr
existing products...ha
and promotional cost6. Easier cooperation wi7. Facilitates promotion8. Helps foster brand lo9. Firms may be able to
Labeling: Its any written, ele
separate but associated label.
Objectives of the Packaging an
Packaging and package labeling
Physical protection Tamong other things, me
temperature, etc.
Barrier protection APermeation is a critical
absorbers to help extendalso maintained in some
for the intended shelf life
Containment or agglopackage for reasons of e
physical handling than
need containment.
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well as sellers
roduct that they like/dislike.
ded for purchase.quality of products especially if unable to
eived risk of purchase.
sychological reward from owning the brand
offering from competitorst by creating tailored images, i.e., Contact lense
companies products making repeat purc
isons
oduce a new product that carries the name of o
lf as much as using a new brand, lower co. de
. Example, BPL telephones.th intermediaries with well known brands
al efforts.
alty helping to stabilize market share.
charge a premium for the brand.
tronic, or graphic communications on the pa
d package labeling
have several objectives
e objects enclosed in the package may require
hanical shock, vibration, electrostatic dischar
barrier from oxygen, water vapor, dust, etc., i
actor in design. Some packages contain desic
shelf life. Modified atmospheres or controlledood packages. Keeping the contents clean, fres
is a primary function.
eration Small objects are typically groupeficiency. For example, a single box of 1000 pe
1000 single pencils. Liquids, powders, and g
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judge products
, i.e., Rolex or
s
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