copy of smm spring 2010
TRANSCRIPT
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Marketing is Managing profitable customer relationships.
Fulfilling customers wants and desires in order
to make a profit
The process by which companies create value for customers
and build strong customer relationships in order to capture
value from customers in return
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New Definition of Marketing (est. in 2007)
Marketing is the activity, set of institutions,
and processes for creating, communicating,
delivering, and exchanging offerings that havevalue for customers, clients, partners, and
society at large.
(American Marketing Association)
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Product/
Service
Producer/Deliverer
Retailer
Distributor
Wholesaler Customer
RESEARCH
Attitude Behavior
Characteristics
Necessity
/DesireExisting Concept
MARKETING OUTLINE
MARKETING
AS A FIELD
OF STUDY
OPERATIONS
CONSUMER
BEHAVIOUR
4Ps
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Anticipating customer need
Developing and Selling ProductConcept
Creating/anticipating demand
Fulfilling demand
Making and delivering a product to thecustomer
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MARKETING PROCESS
Understand the marketplace,customer needs and wants
Design a Marketing Strategy
Construct a marketingprogram
Build Profitable relationshipswith Customers
Capture value from customersin return
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Marketing
Management
Orientations
Production Concept
Product Concept
The idea that consumers will favourproducts that are available and highlyaffordable
The idea that consumers will favourproducts that offer the most in quality,performance and features and that
organizations should therefore devote all itsefforts to make continuous productimprovements
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Selling Concept
Marketing Concept
The idea that consumers will not buy enoughof the firms products unless it undertakesa large scale selling and promotion effort
The marketing management concept holdsthat achei8ving organizational goals depends
on knowing the needs and wants of targetmarkets and delivering the desiredsatisfactions better than competitors do.
Marketing
Management
Orientations
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Marketing
Management
Orientations
A principle of enlightened marketing thatholds that a company should make goodmarketing decisions by considering
consumers wants, the companysrequirements, consumers long terminterests and societys long run interests
Societal Marketing Concept
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Psychological Factors
Perception Learning
Beliefs &
Attitudes
Motivation
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Model of Consumer Behavior
BuyingDecision process
Problem recognitionInformation searchEvaluation of
alternativesPurchase decisionPostpurchase
behavior
Otherstimuli
EconomicTechnologicalPoliticalCultural
ConsumerPsychology
MotivationPerception
LearningMemory
Purchase Decision
Product choiceBrand choiceDealer choicePurchase timing
Purchase amount
Marketingstimuli
ProductPricePlacePromotion
Consumercharacteristics
CulturalSocialPersonalPsychological
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NEED RECOGNITION
INFORMATION SEARCH
PURCHASE DECISION
POSTPURCHASE BEHVIOR
EVALUATION OF ALTERNATIVES
BUYERDECISIONPROCESS
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Steps Between Evaluation of Alternatives and a
Purchase Decision
EvaluationEvaluationofof
alternativesalternatives
Purcha
sedecision
Unanticipatedsituational
factors
Attitudeof others
Purcha
seintention
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MARKET
INTELLIGENCE
CONSUMER
BEHAVIOUR
Decision
Heuristics and
Biases
Rules of thumb or mental shortcuts in
the decision process
Availability Heuristic: Consumers base
their predictions on the quickness and
ease with which a particular example of
an outcome comes to minds
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MARKET
INTELLIGENCE
CONSUMER
BEHAVIOUR
Decision
Heuristics and
Biases
Representativeness Heuristic:
Consumers base their predictions on
how representative or similar the
outcome is to other examples
Anchoring and Adjustment Heuristic:
Consumers arrive at an initial judgment
and them make adjustments of that first
impression based on additionalinformation.
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MARKET
INTELLIGENCE
CONSUMER
BEHAVIOUR
Mental
Accounting
The manner by which consumers code,
categorize and evaluate financial outcomes
of choices
Prospect Theory
Consumers frame decision alternatives in
terms of gains and losses according to a
value function. Consumers are generally lossaverse. They tend to overweight very low
probabilities and underweight very high
probabilities
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MARKET
INTELLIGENCE
CONSUMER
BEHAVIOUR
Mental
Accounting
The manner by which consumers code,
categorize and evaluate financial outcomes
of choices
Prospect Theory
Consumers frame decision alternatives in
terms of gains and losses according to a
value function. Consumers are generally lossaverse. They tend to overweight very low
probabilities and underweight very high
probabilities
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MARKET
INTELLIGENCE
CONSUMER
BEHAVIOUR
Mental
Accounting
Consumers tend to segregate gains
Consumers tend to integrate losses
Consumers tend to integrate smaller losses
with larger gains. Cancellation Principle
Consumers tend to segregate small gains
from large losses. Silver-lining Principle
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MARKET
INTELLIGENCE
CONSUMER
BEHAVIOUR
Mapping the
Customers
Consumption
System/Customer
Activity
Cycle/CustomerScenario
How are consumers thinking?
Introspective method
Retrospective method
Prospective method
Prescriptive method
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MARKET
INTELLIGENCE
CONSUMER
BEHAVIOUR
Biases in Decision
Making by
Marketing
Managers
Fooling yourself about feedback
Not keeping track
Failure to audit your decision process
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Problem Recognition
General Need Description
Product Specification
Supplier Search
Proposal Solicitation
Supplier Selection
Order Routine Specification
Performance ReviewPostPost
PurchasePurchase
PurchasePurchase
InfoInfo
Search/Search/
EvalEval
NeedNeed
RecognitionRecognition
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Participants in the Business Buying
Process
Gatekeepers
Initiators
Buyers
Influencers
Deciders
Users
Approvers
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Four Types of Buying Behavior
Complex
Buying
Behavior
Dissonance-Reducing Buying
Behavior
Variety-
Seeking
Behavior
HabitualBuying
Behavior
Significantdifferences
betweenbrands
Fewdifferences
betweenbrands
HighInvolvement
LowInvolvement
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Product
Place
Promotion
Price
(features, quality, service, support,product line etc.)
(channel of distribution,exclusive vs. intensive, etc.)
(advertising, sales force,brochures, coupons, etc.)
(list price, discount, deals, both end-userand channel)
TheMarketingMix
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Packaging (Physical Evidence)
Positioning (Process)
People
TheMarketingMix
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MARKET
INTELLIGENCE
IDENTIFYING
MARKET
SEGMENTS
AND TARGETS
Preferences Segments
Homogeneous preferences
Diffused preferences
Clustered preferencesSEGMENT
MARKETIN
G
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MARKET
INTELLIGENCE
IDENTIFYING
MARKET
SEGMENTS
AND TARGETS
Customers with distinct set of needs
Pay premium to a firm that best satisfies
their needs
Unlikely to attract other competitors
Nicher gains certain economies through
specialization
Niche has size, profit and growth potential
Fairly small and attract few competitors
NICHE
MARKETING
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MARKET
INTELLIGENCE
IDENTIFYING
MARKET
SEGMENTS
AND TARGETS
LOCAL MARKETING
CUSTOMERIZATION
Customized Marketing
One-to-one Marketing
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MARKET
INTELLIGENCE
IDENTIFYING
MARKET
SEGMENTS
AND TARGETS
GEOGRAPHIC
VARIABLES
Geographic region
City size
Density
Climate
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MARKET
INTELLIGENCE
IDENTIFYING
MARKET
SEGMENTS
AND TARGETS
DEMOGRAPHIC
VARIABLES
Demographic age
Family size
Family Life cycle
Gender
Income
Occupation
Education
Religion
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MARKET
INTELLIGENCE
IDENTIFYING
MARKET
SEGMENTS
AND TARGETS
DEMOGRAPHIC
VARIABLES
Race
Generation
Nationality
Social Class
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MARKET
INTELLIGENCE
IDENTIFYING
MARKET
SEGMENTS
AND TARGETS
PSYCHOGRAPHIC
VARIABLES
Psychographic Lifestyle
(Culture oriented, Sports oriented, Outdoor
oriented)
Personality
(Compulsive, Gregarious, Authoritarian,
Ambitious)
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MARKET
INTELLIGENCE
IDENTIFYING
MARKET
SEGMENTS
AND TARGETS
PSYCHOGRAPHIC
VARIABLES
Innovators
Survivors
Thinkers
Believers
Achievers
Strivers
Experiencers
Makers
Ideals Achievement Self-Expression
Primary
Motivation
High Resource
High Innovation
Low Resource
Low Innovation38
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MARKET
INTELLIGENCE
IDENTIFYING
MARKET
SEGMENTS
AND TARGETS
PSYCHOGRAPHIC
VARIABLES
Groups with Higher Resources
Innovators Successful, Sophisticated, Active,
Take Charge people, with high self esteem.
Purchases often reflect cultivated tastes for
relatively upscale, niche-oriented products andservices
Thinkers Mature, satisfied and reflective people
who are motivated by ideals and value order,
knowledge and responsibility. Favour durability,
functionality and value in products
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MARKET
INTELLIGENCE
IDENTIFYING
MARKET
SEGMENTS
AND TARGETS
PSYCHOGRAPHIC
VARIABLES
Groups with Lower Resources
Makers Practical down-to-earth, self-sufficient
people who like to work with their hands. Favour
products with a practical or functional purpose.
Survivors Elderly, passive people who are
concerned about change. Loyal to their favourite
brands
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MARKET
INTELLIGENCE
IDENTIFYING
MARKET
SEGMENTS
AND TARGETS
BEHAVIORAL
VARIABLES
Behavioral Occasions
(Regular Occasion, Special Occasion)
Benefits
(Quality, Service, Economy, Speed)
User Status
(Non-user, Ex-user, Potential User, First time
user, Regular User)
Usage Rate
(Light user, Medium user, Heavy user)
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MARKET
INTELLIGENCE
IDENTIFYING
MARKET
SEGMENTS
AND TARGETS
BEHAVIORAL
VARIABLES
The Conversion Model
Measures the strength ofPsychological
Commitment between brands and
consumers and their willingness and
openness to change
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MARKET
INTELLIGENCE
IDENTIFYING
MARKET
SEGMENTS
AND TARGETS
CONVERSION
MO
DEL -U
sers
COMMITTMENT
LOW
HIGH
CONVERTIBLE
SHALLOW
AVERAGE
ENTRENCHED
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MARKET
INTELLIGENCE
IDENTIFYING
MARKET
SEGMENTS
AND TARGETS
STEPS IN
SEGME
NTATI
ON
PROCESS
1. Needs Based Segmentation
2. Segment Identification
3. Segment Attractiveness
4. Segment Profitability
5. Segment Positioning Value Proposition
6. Segment Acid Test - Segment Story Board
7. Marketing-Mix Strategy
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BRAND EQUITY
Executive Summary
Table ofContents
Situation Analysis
Marketing Strategy
Financial Projections
Implementation
C
ontrols
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BRAND EQUITY
BRANDING
Benefits of Branding to Companies
Simplify Product Handling or tracing
Organize inventory and accounting records
Legal Protection (Intellectual Property)
BrandName Registered Trademarks
Manufacturing Process Patents
P
ackaging C
opyrights and designs Brand Loyalty
Predictability of Demand
Entry barriers for competition
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BRANDING
Benefits of Branding Marketing Advantages
Improved Perceptions ofProduct Performance
Greater Loyalty
Less Vulnerability to Competitive Marketing Actions
Larger Margins
More Inelastic Consumer Response to Price
Increases
More Elastic Consumer Response to Price Decreases
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BRANDING
Benefits of Branding Marketing Advantages
Greater Trade Cooperation and Support
Increased Marketing Communication Effectiveness
Possible Licensing Opportunities
Additional Brand Extension Opportunities
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ProductPRODUCT LINE
A group of products that are closely related becausethey function in a similar manner, are sold to the samecustomer groups, are marketed through the sametypes of outlets or fall within given price ranges
PRODUCT MIX
The set of all product lines and items that a particularseller offers for sale
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ProductBRAND NAME SELECTION
- Selection
- Protection
BRAND SPONSORSHIP
- Manufacturers brand
- Private brand
- Licensing
- Co-branding
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Price
PRICING APPROACHES
Cost based Pricing
Cost Plus pricing Add standard profit(mark-up) to the cost of the product
Break-Even Analysis and Target Profit Pricing
Value-based pricing
Setting price based on buyers perceptions ofvalue rather than on the sellers cost
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Price
PRODUCT MIX PRICING STRATEGIES
Captive Product Pricing
Setting a price for products that must be usedalong with a main product e.g blades for razors,
cartridges for printers
By-Product Pricing
Setting a price for by products in order to makethe main products price more competitive
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Price
PRICE ADJUSTMENT STRATEGIES
Discount
Allowance
Segmented Pricing
Psychological
Geographical
Promotional
International
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CustomerSatisfaction - Elements of company performance
- On-time transportation
- Completeness of order
- Repurchase intention
- Product Quality
- Customer Service
Measuring Satisfaction
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MARKETING
MANAGEMENT
TASKS
Developing Marketing Strategies and
Plans
Capturing Marketing Insights
Connecting with Customers Building Strong Brands
Shaping the Market Offerings
Delivering Value Communicating Value
Creating Long-term Growth
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Levels of Management
T
M
O
STRATEGY
FORMULATION
LEVELS
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Levels of Management
VISION
MISSION
STRATEGY
STRATEGY
FORMULATION
LEVELS
PLANS
TACTICS
T
M
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STRATEGY
FORMULATION
LEVELS Product / Brand Level
SBU Level
Corporate Level
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ANALYSIS TOOLS
BCG Matrix
SWOT Analysis / TOWS Analysis
Customer Matrix
Customer Profitability Analysis
Intensive Growth Strategies
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MARKET
INTELLIGENCE
Market Scanning
Internal
External
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MARKET
INTELLIGENCE
Sales Force to spot and report new
development
Distributors, Retailers and other
intermediaries
External Networking competitor products,
trade shows, competitor reports,
Advisory Panel
Government data resources
Information Suppliers Gartner, ACNielsen,
Biz360
Customer feed back
External
MARKET
INTELLIGENCE
Market Scanning
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MARKET
INTELLIGENCE Demographic Environment
Population growth, Age Mix, Household
patterns Economic Environment
Geographical shifts in population,
Income redistribution, Credit culture
Social & Cultural Environment
Application of
Factors on
Environments
MARKET
INTELLIGENCE
Market Scanning
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MARKET
INTELLIGENCE Social & Cultural Environment
- Core Values
- Secondary Beliefs
Application of
Factors on
Environments
MARKET
INTELLIGENCE
Market Scanning
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MARKET
INTELLIGENCE Natural Environment
- Consumption of vital resources
- Oil, Water, Metals, Nuclear
Materials
- Global Warming, Weather
patterns
Application of
Factors onEnvironments
MARKET
INTELLIGENCE
Market Scanning
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MARKET
INTELLIGENCE
MARKETING
RESEARCH
Define the problem andresearch objectives
Develop the research plan
Collect the Information
Analyze the information
Present the findings
Make the decision
Process
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MARKET
INTELLIGENCE
MARKETING
RESEARCH
Step - 1
What is the problem?
Research objectives?
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MARKET
INTELLIGENCE
MARKETING
RESEARCH
Step 2
Research Plan
RESEARCH APPROACHES
Observational Research
Focus Group Research
Survey Research
Behavioral Data
Experimental Research
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MARKET
INTELLIGENCE
MARKETING
RESEARCH
Step 2
Research Plan
RESEARCH INSTRUMENTS
Qualitative Measures
Shadowing
Behaviour mapping
Consumer journey
Camera journals
Extreme user interviews
Unfocus groups
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MARKET
INTELLIGENCE
MARKETING
RESEARCH
Measuring
Marketing
Productivity
Market Share
Overall Market Share
Served Market Share
Relative Market Share
Companys sales expressed as a percentage of total market sales
Is all the buyers who are willing and able to buy a companysproduct
A market share that is in comparison with the market leader
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MARKET
INTELLIGENCE
MARKETING
RESEARCH
Measuring
Marketing
Productivity
Market Share
Overall Market Share
Overall Market Share = Customer Penetration
X
Customer Loyalty
X
Customer Selectivity
X
Price Selectivity
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MARKET
INTELLIGENCE
MARKETING
RESEARCH
Measuring
Marketing
Productivity
Customer Penetration
Customer Loyalty
Customer Selectivity
Price Selectivity
% of all customers who buy formthe company
Purchases made by customers as a
% of total purchases made from all
suppliers
Size of the average customer purchase
from the company expressed as a % of
the average customer purchase from an
average company
Average price charged by the
company as a percentage of the
average price charged by all
companies
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MARKET
INTELLIGENCE
MARKETING
RESEARCH
Measuring
Marketing
Productivity
Sales Analysis
Sales variance analysis
Micro-sales analysis
Expense to Sales Analysis
Financial Analysis
DuPont Analysis
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MARKET
INTELLIGENCE
MARKETING
RESEARCH
Forecasting and
Demand
Measurement
Measures of Market Demand
Potential Market: Is the set of
consumers who profess a sufficient levelof interest in a market offer. They must
have enough income and have access to
the product offer.
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MARKET
INTELLIGENCE
MARKETING
RESEARCH
Forecasting and
Demand
Measurement
Measures of Market Demand
Available Market: Is the set of
consumers who have interest, income,access and qualifications for the
particular market offer.
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MARKET
INTELLIGENCE
MARKETING
RESEARCH
Forecasting and
Demand
Measurement
Measures of Market Demand
Target Market: Is the part of the
qualified market that the companydecides to pursue.
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MARKET
INTELLIGENCE
MARKETING
RESEARCH
Forecasting and
Demand
Measurement
Market Demand
Is the total volume that would be
bought by a defined consumer group, ina defined geographical area in a defined
time period, in a defined marketing
environment under a defined marketing
program
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MARKET
INTELLIGENCE
MARKETING
RESEARCH
Forecasting and
Demand
Measurement
Estimating Future Demand
Past Data Analysis
Time-Series analysis
Exponential Smoothing
Statistical Demand Analysis
Econometric Analysis
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MARKET
INTELLIGENCE
MARKETING
RESEARCH
Forecasting and
Demand
Measurement
Estimating Future Demand
Survey of buyers intentions
Composite of sales force opinion
Expert Opinion
Market Test Method
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Analysis ofCapabilities
Porters
Value Chain
SWOT - TOWS
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Analysis ofCapabilities
AirTel
SWOT - TOWS
Strengths Bharti Airtelhas more than 65 million customers (July
2008). It is the largest cellular provider in India, and also
supplies broadband and telephone services - as well as many
other telecommunications services to both domestic and
corporate customers.
Other stakeholders in Bharti Airtel include Sony-Ericsson,
Nokia - and Sing Tel, with whom they hold a strategic
alliance. This means that the business has access to
knowledge and technology from other parts of the
telecommunications world.
The company has covered the entire Indian nation with its
network. This has underpinned its large and rising customer
base.
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Analysis ofCapabilities
AirTel
SWOT - TOWS
Weaknesses
SBU technical as well as organizational capabilities are
outsourced.
As opposed to competitors (Hutshison Essar), Key
Infrastructure (Communication Towers) are not owned byAirTel.
Lack of any resolve to develop future markets once the
Indian market has become mature.
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Analysis ofCapabilities
Environmental
Risk
SWOT - TOWS
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Analysis ofCapabilities
Environmental
Analysis
SWOT - TOWS
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Analysis ofCapabilities
Ratios
Performance
Analysis
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Analysis ofCapabilities
Profit Impact of
Market Strategy
Performance
Analysis
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Analysis ofCapabilities
Profit Impact of
Market Strategy
Performance
Analysis
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Analysis ofCapabilities
Portfolio Analysis
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Analysis ofCapabilities
Portfolio Analysis
War Horses Dodos
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Analysis ofCapabilities
Portfolio Analysis
1. Build
2. Hold
3. Harvest
4. Divest
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SALES (In thousands)
PRODUCTS
LAPTOPS 2007 2008 2009
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Analysis ofCapabilities
Portfolio Analysis
LAPTOPS 2007 2008 2009
Sony 300 400 410
Toshiba 400 450 470
Dell 425 500 490Acer 600 610 500
IBM 100 90 75
HARD DISK DRIVES
Seagate 900 1050 2000
Toshiba 800 700 900
Samsung 810 811 900
TV
Sony 2000 2100 1500
LG 980 1500 2000
Samsung 1000 920 1700
Sharp 800 900 800
Toshiba 1200 1800 1300
DVD PLAYERS
Toshiba 700 900 1800
Sony 1000 2000 1070
LG 900 1600 1500
Samsug 400 1000 1200
Phillips 1000 950 1100
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Model of Consumer Behavior
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BuyingDecision process
Problem recognitionInformation searchEvaluation of
alternativesPurchase decisionPostpurchase
behavior
Otherstimuli
EconomicTechnologicalPoliticalCultural
ConsumerPsychology
MotivationPerceptionLearning
Memory
Purchase Decision
Product choiceBrand choiceDealer choicePurchase timingPurchase amount
Marketingstimuli
ProductPricePlacePromotion
Consumercharacteristics
Cultural
SocialPersonalPsychological
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Four Types of Buying Behavior
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Four Types of Buying Behavior
ComplexBuying
Behavior
Dissonance-
Reducing Buying
Behavior
Variety-Seeking
Behavior
Habitual
Buying
Behavior
Significantdifferencesbetweenbrands
Few
differencesbetweenbrands
HighInvolvement
LowInvolvement
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MARKET
INTELLIGENCE
CONSUMER
BEHAVIOUR
Decision
Heuristics and
Biases
Rules of thumb or mental shortcuts in
the decision process
Availability Heuristic: Consumers basetheir predictions on the quickness and
ease with which a particular example of
an outcome comes to minds
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MARKET
INTELLIGENCE
CONSUMER
BEHAVIOUR
Decision
Heuristics and
Biases
Representativeness Heuristic:Consumers base their predictions on
how representative or similar the
outcome is to other examples
Anchoring and Adjustment Heuristic:
Consumers arrive at an initial judgment
and them make adjustments of that first
impression based on additionalinformation.
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MARKET
INTELLIGENCE
CONSUMER
BEHAVIOUR
Mental
Accounting
The manner by which consumers code,categorize and evaluate financial outcomes
of choices
Prospect Theory
Consumers frame decision alternatives in
terms of gains and losses according to a
value function. Consumers are generally loss
averse. They tend to overweight very low
probabilities and underweight very high
probabilities
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MARKET
INTELLIGENCE
CONSUMER
BEHAVIOUR
Mental
Accounting
The manner by which consumers code,categorize and evaluate financial outcomes
of choices
Prospect Theory
Consumers frame decision alternatives in
terms of gains and losses according to a
value function. Consumers are generally loss
averse. They tend to overweight very low
probabilities and underweight very high
probabilities
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MARKET
INTELLIGENCE
CONSUMER
BEHAVIOUR
Mental
Accounting
Consumers tend to segregate gains
Consumers tend to integrate losses
Consumers tend to integrate smaller losses
with larger gains. C
ancellationP
rinciple Consumers tend to segregate small gains
from large losses. Silver-lining Principle
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MARKET
INTELLIGENCE
CONSUMER
BEHAVIOUR
Mapping theCustomers
Consumption
System/Customer
Activity
Cycle/Customer
Scenario
How are consumers thinking?
Introspective method
Retrospective method
Prospective method
Prescriptive method
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MARKET
INTELLIGENCE
COMPETITION 1 Against whom are we competing?
2What strengths and weaknesses do they
possess?
3What are their objectives?
4What strategies are they pursuing and how
successful are they?
5 How are they likely to behave and, in
particular, how are they likely to react to
offensive moves?135
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MARKET
INTELLIGENCE
COMPETITION
Levels of
Competition
1 Competition consists only of those companies offering a similar
product or service to the target market, utilizing a similar technology,and exhibiting similar degrees of vertical integration. Thus, Nestl (which
makes Nescaf) sees General Foods, with its Maxwell House brand, as a
similar competitor in the instant coffee market, while Penguin sees its
direct competitors in the chocolate snack bar market to be Kit-Kats six
pack, Twix and Club.
2 Competition consists of all companies operating in the same productor service category. Penguins indirect competitors, for example, consist
of crisps and ice-creams.
3 Competition consists of all companies manufacturing or supplying
products that deliver the same service. Thus, long-distance coach
operators compete not just against each other, but also against railways,
cars, planes and motorcycles.4 Competition consists of all companies competing for the same
spending power. An example of this is the American motorcycle
manufacturer, Harley Davidson, which does not necessarily see itself as
competing directly with other motorcycle manufacturers. Instead, for
many buyers it is a choice between a Harley Davidson motorcycle and a
major consumer durable such as a conservatory or a boat136
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MARKET
INTELLIGENCE
COMPETITION
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MARKET
INTELLIGENCE
COMPETITION
1. Industry Perspective ofCompetition
2. Market Perspective ofCompetition
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MARKET
INTELLIGENCE
COMPETITION
Industry
Perspective
ofCompetition
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MARKET
INTELLIGENCE
COMPETITION
Industry
Perspective
ofCompetition
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MARKET
INTELLIGENCE
COMPETITION
Competitor
Responses
1. The relaxed competitor
2. The tiger competitor
3. The selective competitor
4. The unpredictable competitor
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MARKET
INTELLIGENCE
COMPETITION
Identifying
Competitor
Weaknesses
Product-related factors Outdated products and a failure to innovate
Product weaknesses
Weak or non-existent selling propositions.
Managerial factors
A short-term orientation
The poor management of staff The failure to focus upon what is important
Managerial predictability and the adherance to well-tried formulae
Product or service obsolescence/weaknesses
An over- and ill-justified confidence
Managerial arrogance and a belief that the organization has an
inalienable right to a place in the market Competitive arrogance, competitive myopia and competitive
sclerosis
Bureaucratic structures
A fiscal year short-term fixation
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MARKET
INTELLIGENCE
COMPETITION
Competitive
Intelligence
System
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MARKET
INTELLIGENCE
SEGMETATION,TARGETTING &
POSITIONING
Stages of
STP
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MARKET
INTELLIGENCE
IDENTIFYING
MARKET
SEGMENTS
AND TARGETS
PSYCHOGRAPHIC
VARIABLES
VALS Framework
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MARKET
INTELLIGENCE
SEGMETATION,TARGETTING &
POSITIONING
SegmentationPsychographic
Young & Rubicam, 4Cs (a Cross-Cultural
Consumer Characterization) for UK
1 The constrained
(i) the resigned poor
(ii) the struggling poor.
2 The middle majority
(i) mainstreamers
(ii) aspirers
(iii) succeeders.
3 The innovators(i) transitionals
(ii) reformers.
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MARKET
INTELLIGENCE
Source: The Times, 1 February 1997, p. 17.
SEGMETATION,TARGETTING &
POSITIONING
SegmentationPsychographic
Consumer profiling and shopping habits
Habit-bound diehards.
Self-indulgent shoppers.
Struggling idealists.
Comfortable and contenteds.
Frenzied copers.
Mercenaries149
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MARKET
INTELLIGENCE
SEGMETATION,TARGETTING &
POSITIONING
Target
Marketing
Strategies
1. Undifferentiated or mass marketing
2. Product-variety or differentiated
marketing
3. Target or concentrated marketing.
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MARKET
INTELLIGENCE
SEGMETATION,TARGETTING &
POSITIONING
Positioning
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MARKET
INTELLIGENCE
SEGMETATION,TARGETTING &
POSITIONING
Positioning
1 Confused positioning, where buyers are unsure of
what the organization stands for
2 Over-positioning, where consumers perceive theorganizations products as being expensive and fail
to recognize the full breadth and value of the range
3Under-positioning, where the message is simply
too vague and consumers have little real idea of
what the organization stands for or how it differs
from the competition.153
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MARKET
INTELLIGENCE
GENERICSTRATEGIES
BCG based
strategies
1. BUILD
2. HOLD
3. HARVEST
4. DIVEST
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MARKET
INTELLIGENCE
GENERICSTRATEGIES
GE MATRIX
based
strategies
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MARKET
INTELLIGENCE
GENERICSTRATEGIES
PORTERS
STRATEGIES
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MARKET
INTELLIGENCE
GENERICSTRATEGIES
PORTERS
STRATEGIES
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MARKET
INTELLIGENCE
GENERICSTRATEGIES
POSITION
BASED
STRATEGIES
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MARKET
INTELLIGENCE
SCORPIOTECHNIQUE
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MARKET
INTELLIGENCE
SCORPIOTECHNIQUE
Industry orMarket
Industry or Technology thinking
Market or Customer Thinking
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MARKET
INTELLIGENCE
SCORPIOTECHNIQUE
Industry orMarket-
Importance
It defines your real competition
It defines your customers needs
It defines your potential for growth
It defines your strategic threats and
opportunities It can kill you early if you dont get it right .
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MARKET
INTELLIGENCE
SCORPIOTECHNIQUE
Customer
Market Research
Consumer Insights
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MARKET
INTELLIGENCE
SCORPIOTECHNIQUE
Segmentationand
Targeting
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MARKET
INTELLIGENCE
SCORPIOTECHNIQUE
Positioningand
Branding
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MARKET
INTELLIGENCE
SCORPIOTECHNIQUE
CustomerRetention
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MARKET
INTELLIGENCE
SCORPIOTECHNIQUE
CustomerRetention
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MARKET
INTELLIGENCE
SCORPIOTECHNIQUE
Organization:Processes
and
Culture
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MARKET
INTELLIGENCE
SCORPIOTECHNIQUE
Offerings
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MARKET
INTELLIGENCE
SCORPIOTECHNIQUE
Offerings