principles of marketing lecture-45. summary of lecture-44
TRANSCRIPT
IdeaGeneration
IdeaScreening
ConceptDevelopmentand Testing
MarketingStrategy
BusinessAnalysis
ProductDevelopment
TestMarketing
Commercialization
Time
ProductDevelopment
Stage
Introduction
Profits
Sales
Growth Maturity Decline
Sales andProfits ($)
Sales and Profits Overthe Product’s Life FromInception to Demise
Price–The amount of money charged for a product or service, or the sum of the values that consumers exchange for the benefits of having or using the product or service.
Internal FactorsInternal Factors
PricingDecisionsPricing
Decisions
External FactorsExternal Factors
Target Market
Positioning Objectives
Total CostsSum of the Fixed and Variable Costs for a Given
Level of Production
Total CostsSum of the Fixed and Variable Costs for a Given
Level of Production
Variable Costs
Costs that do varydirectly with the
level of production.
Raw materials
Variable Costs
Costs that do varydirectly with the
level of production.
Raw materials
Fixed Costs(Overhead)
Costs that don’tvary with sales or production levels.
Executive SalariesRent
Fixed Costs(Overhead)
Costs that don’tvary with sales or production levels.
Executive SalariesRent
Fixed Costs Variable Costs
Raw materials
Component parts
Hourly wages
Packaging & freight
Sales commissions
Rent
Depreciation
Manager’s salaries
Property taxes
Insurance
Ru
pee
s (i
n t
ho
usa
nd
s)R
up
ees
(in
th
ou
san
ds)12001200
10001000
800800
600600
400400
200200
00
Total costTotal cost
Fixed costFixed cost
TargetTarget profitprofit
Total revenueTotal revenue
1010 2020 3030 4040 5050
Sales volume in units (thousands)Sales volume in units (thousands)
Break-even pointBreak-even point
Premium Strategy
Overcharging Strategy
Overcharging Strategy
Good-Value Strategy
Good-Value Strategy
Economy Strategy
Economy Strategy
Price
Higher Lower
Higher
Lower
Qu
alit
y
Discount and Allowance Pricing
Segmented Pricing
Psychological Pricing
Promotional Pricing
Geographical Pricing
International Pricing
Hold Current Price;Continue to MonitorCompetitor’s Price.
Hold Current Price;Continue to MonitorCompetitor’s Price.
Reduce PriceReduce Price
Raise PerceivedQuality
Raise PerceivedQuality
Improve Quality& Increase PriceImprove Quality& Increase Price
Launch Low-Price“Fighting Brand”
Launch Low-Price“Fighting Brand”
Has Competitor CutPrice?
Has Competitor CutPrice?
Will Lower Price Negatively Affect Our
Market Share & Profits?
Will Lower Price Negatively Affect Our
Market Share & Profits?
Can/ Should EffectiveAction be Taken?
Can/ Should EffectiveAction be Taken?
Yes
No
No
No
20 Contacts
Manufacturer
Manufacturer
Manufacturer
Manufacturer
Manufacturer
Customer
Customer
Customer
Customer
9 Contacts
Manufacturer
Manufacturer
Manufacturer
Manufacturer
Manufacturer
Customer
Customer
Customer
Customer
Wholesaling Intermediary
ProducerAgent/Broker
Wholesaler Retailer Consumer
Producer Wholesaler Retailer Consumer
Producer Retailer Consumer
Producer Consumer
AdvertisingAdvertising
Personal SellingPersonal Selling
Any Paid Form of Non-personal Presentation by an Identified Sponsor.
Any Paid Form of Non-personal Presentation by an Identified Sponsor.
Sales Promotion Short-term Incentives to Encourage Sales.
Public RelationsBuilding Good Relations with Various Publics by Obtaining Favorable Unpaid Publicity.
Direct Marketing Direct Communications With Individuals to Obtain an Immediate Response.
Personal Presentations by a Firm’s Sales Force.
AdvertisingA paid form of non-personal
communication about an organization and/or its
products to a target audience through a mass medium.
Personal selling
The direct presentation of a product to a prospective
customer by a representative of the selling organization.
Sales promotion
Demand-stimulating activity designed to supplement advertising and facilitate
personal selling.
Public relationsA planned communication effort by an organization to contribute to generally favorable attitudes
and opinions toward an organization and its products.
Direct Marketing
Direct connections with carefully targeted individual consumers
to obtain an immediate response and cultivate lasting
customer relationship
Step 1. Prospecting and Qualifying
Step 1. Prospecting and Qualifying
Step 2. Preapproach Step 2. Preapproach
Step 3. Approach Step 3. Approach
Step 4. Presentation/ Demonstration
Step 4. Presentation/ Demonstration
Identifying and Screening For Qualified Potential Customers.
Learning As Much As Possible About a Prospective Customer Before Making a Sales Call.
Knowing How to Meet the Buyer to Get the Relationship Off to a Good Start.
Telling the Product “Story” to the Buyer, and Showing the Product Benefits.
Step 5. Handling Objections Step 5. Handling Objections
Step 6. Closing Step 6. Closing
Step 7. Follow-Up Step 7. Follow-Up
Seeking Out, Clarifying, and Overcoming Customer Objections to Buying.
Asking the Customer for the Order.
Following Up After the Sale to Ensure Customer Satisfaction and Repeat Business.
Designing Sales force Strategy and StructureDesigning Sales force Strategy and Structure
Recruiting and Selecting SalespeopleRecruiting and Selecting Salespeople
Training SalespeopleTraining Salespeople
Compensating SalespeopleCompensating Salespeople
Supervising SalespeopleSupervising Salespeople
Evaluating SalespeopleEvaluating Salespeople
• The current issues and marketing can be divided into two major subjects:
–Social responsibility
–Ethics
• The two concepts are very closely related
TargetConsumers
Product
Place Price
Promotion
Mar
ketin
g
Im
plem
enta
tion
Marketing
Planning
Marketing
Control
Mar
ketin
g
Analys
is
Competitors
MarketingIntermediaries
PublicsSuppliers
Demographic-Economic
Environment
Technological-Natural
Environment
Political-Legal
Environment
Social-Cultural
Environment
Simple Marketing Simple Marketing SystemSystem
Producer/Seller Consumer
Communication
Product/Service
Money
Feedback
Marketing Process
The process of :
Analyzing marketing opportunities
Selecting target markets
Developing the market Mix
Managing the marketing effort