Download - Marketing Unit 1 Update
-
8/6/2019 Marketing Unit 1 Update
1/118
Meha JoshiAssistant Professor,
Delhi School of Professional Studies andResearch
-
8/6/2019 Marketing Unit 1 Update
2/118
Marketing is creating and delivering standardof living -Paul Mazur
Marketing is the management process thatidentifies, anticipates and satisfies customerrequirements profitably
--The Chartered Institute of Marketing
-
8/6/2019 Marketing Unit 1 Update
3/118
Marketing is a social and managerial processby which individuals and groups obtain whatthey want and need through creating,
offering and exchanging products of valuewith others
Kotler 1991
-
8/6/2019 Marketing Unit 1 Update
4/118
W ho are our existing / potential customers?W hat are their current / future needs?How can we satisfy these needs?
Can we offer a product/ service that the customerwould value?Can we communicate with our customers?Can we deliver a competitive product of service?
Why should customers buy from us?
-
8/6/2019 Marketing Unit 1 Update
5/118
Concepts in
Marketing
-
8/6/2019 Marketing Unit 1 Update
6/118
States that Consumers will favor those products that are widely available and low in cost
P roduce as much as possible Distribute widely Ex am ple, Henry Fords early cars
-
8/6/2019 Marketing Unit 1 Update
7/118
He is credited with " Fordism ", that is, massproduction of inexpensive goods coupled withhigh wages for workers. Ford had a global vision,
with consumerism as the key to peace. Hisintense commitment to systematically loweringcosts resulted in many technical and businessinnovations, including a franchise system
However, there were problems here, whichwere?
N o focus on quality and features, just priceand availability
T his gave way to the P roduct Conce pt
-
8/6/2019 Marketing Unit 1 Update
8/118
Consumers will favour that product that offers thebest quality/ performance and most features
Hence, what do you do? Make the best possible product
Do R&D, come out with new features, im prove, im proveand im prove
W hat are the problems here?
Product Concept Myopia T heodore Levitt called it Marketing Myo pia Focus on the product, rather than on the customer
T he rise of budget airlines, even in Asia Bajaj missed the motorcycle revolution
-
8/6/2019 Marketing Unit 1 Update
9/118
Determine Consumer N eeds/Wants and fillthem better than anyone else, at a profit
T he Consumer is thus the starting point
Marketing starts with consumer needs Hence, marketers have to be consumer
focused always, consumer obsessed, in fact
Who is the market leader in consumer electronics today here in this country?
-
8/6/2019 Marketing Unit 1 Update
10/118
Y ou need to care about society as well
Societal Marketing: Fill consumer needs, at the sametime, harm him/her & society as little as possible
T hus, Mc Donalds faces lawsuitsCenter for Science in the Public Interest (CSPI) servedMcDonald's with a notice of its intent to sue if the fast foodgiant continues to use toys to promote Happy Meals. (An"intent to sue" letter is a prerequisite to filing a lawsuit insome states.) The basis for the potential case is that usingtoys to market to small children is unfair and deceptiveunder the consumer protection laws in a number of states.According to CSPI's letter , McDonald's toy promotionsviolate the laws of California, Massachusetts, New Jersey,Texas, and the District of Columbia.
-
8/6/2019 Marketing Unit 1 Update
11/118
The letter more specifically spells out the legal basisfor the case:
McDonalds practices are predatory and wrong. They arealso illegal, because marketing to kids under eight is
(1) inherently deceptive, because young kids are notdevelopmentally advanced enough to understand thepersuasive intent of marketing; and
(2) unfair to parents, because marketing to children
undermines parental authority and interferes with theirability to raise healthy children.
-
8/6/2019 Marketing Unit 1 Update
12/118
Parents say
McDonald's makes my job as a parent more
difficult. They market cheap toys that appeal tokids and it works. My kids always want to go toMcDonald's because of the toys. I try my best toeducate my kids about healthy eating but it'shard when I am competing against the allure of anew Shrek toy.
T hus, currently, the last two conce pts hold away
-
8/6/2019 Marketing Unit 1 Update
13/118
Analysis/Audit - where are we now?Objectives - where do we want to
be?Strategies - which way is best?Tactics - how do we get there?
(Implementation - Getting there!)Control - Ensuring arrival
-
8/6/2019 Marketing Unit 1 Update
14/118
Marketing
Environment
-
8/6/2019 Marketing Unit 1 Update
15/118
SW OT analysis
PEST analysisFive forces
analysis
-
8/6/2019 Marketing Unit 1 Update
16/118
Strengths (internal)Weaknesses (internal)Opportunities (external)Threats (external)
-
8/6/2019 Marketing Unit 1 Update
17/118
-
8/6/2019 Marketing Unit 1 Update
18/118
Internal Environmental factors T he set of factors inside the marketers value chain T hat can influence marketing success
Employees Hire good peo ple E m power them kee p them ha pp y otherwise how can they kee p your
customers ha pp y ? S tockholders
How can they influence you ? Mergers and acquisitions require su
pport
Institutional investors can buy and sell huge volumes shareholder value
-
8/6/2019 Marketing Unit 1 Update
19/118
Partners McDonalds franchisees Resellers and Distributors
Suppliers crucial when there are lots of parts car industry JI T Few su pp liers only (following Ja panese)
Customers
Consumer Movement T hus, the im portance of relationshi p marketing particularly, when times are hard
-
8/6/2019 Marketing Unit 1 Update
20/118
Political factorsEconomic factorsSocio-cultural factorsTechnological factors
-
8/6/2019 Marketing Unit 1 Update
21/118
Monopolies legislationEnvironmental protection lawsTaxation policyGovernment policyLegislation
-
8/6/2019 Marketing Unit 1 Update
22/118
InflationEmployment
Disposable incomeBusiness cyclesEnergy availability and costOthers?
-
8/6/2019 Marketing Unit 1 Update
23/118
DemographicsDistribution of incomeSocial mobilityLifestyle changesConsumerismLevels of education
Others?
-
8/6/2019 Marketing Unit 1 Update
24/118
New discoveries andinnovations
Speed of technology transferRates of obsolescenceInternetInformation technologyOthers?
-
8/6/2019 Marketing Unit 1 Update
25/118
Source: Adapted from M. E. Porter,Competitive Strategy, Free Press,1980, p. 4.
Threat ofThreat ofsubstitutessubstitutes
Potentialentrants
Threat ofThreat ofentrantsentrants
Suppliers
BargainingBargainingpowerpower
Substitutes
Buyers
BargainingBargainingpowerpower
O P TITIVERIVALRY
Five forces analysis
-
8/6/2019 Marketing Unit 1 Update
26/118
Five Forces Analysis: Key
Questions and ImplicationsWhat are the key forces at work in the competitiveenvironment?Are there underlying forces driving competitiveforces?Will competitive forces change?What are the strengths and weaknesses of competitors in relation to the competitive forces?Can competitive strategy influence competitive forces(eg by building barriers to entry or reducingcompetitive rivalry )?
-
8/6/2019 Marketing Unit 1 Update
27/118
-
8/6/2019 Marketing Unit 1 Update
28/118
Selling starts with theseller & is preoccupiedall the time with the
needs of the seller.Seller is the centre ofthe business universe.Emphasize on saleable
surplus available withthe corporation
Marketing starts withthe buyer & focusesconstantly on the
needs of the buyers.Buyers is the centre ofthe business universe.Emphasizes on
identification of amarket opportunity.
Selling V/s Marketing
-
8/6/2019 Marketing Unit 1 Update
29/118
Seeks to quicklyconvert product
into cash.View business as agood producingprocess.Cost determines theprice.Traditional concept.
Customer is the lastlink.
Seeks to convertcustomer needsinto products.View business as acustomer satisfyingprocess.Consumerdetermines price.Modern concept.
Customer is the firstlink.
-
8/6/2019 Marketing Unit 1 Update
30/118
The Marketing Mix
-
8/6/2019 Marketing Unit 1 Update
31/118
-
8/6/2019 Marketing Unit 1 Update
32/118
The Marketing Mix
The tools available to a business to gain the
reaction it is seeking from its target market inrelation to its marketing objectives7Ps Price, Product, Promotion, Place, People,Process, Physical Environment
Traditional 4Ps extended to encompass growth ofservice industry
-
8/6/2019 Marketing Unit 1 Update
33/118
Price
-
8/6/2019 Marketing Unit 1 Update
34/118
Price
Pricing StrategyImportance of:
-knowing the market-elasticity-keeping an eye
on rivals
Pricing StrategyImportance of:
-knowing the market-elasticity-keeping an eyeon rivals
-
8/6/2019 Marketing Unit 1 Update
35/118
Product
-
8/6/2019 Marketing Unit 1 Update
36/118
ProductMethods used to
improve/differentiatethe product and increase sales ortarget sales more effectively to gaina competitive advantage e.g.
-Extension strategies-Specialised versions-New editions-Improvements real orotherwise!-Changed packaging-Technology, etc.
-
8/6/2019 Marketing Unit 1 Update
37/118
Promotion
-
8/6/2019 Marketing Unit 1 Update
38/118
Promotion
Strategiesto make the consumer aware of
the existence of a productor serviceNOT just advertising
-
8/6/2019 Marketing Unit 1 Update
39/118
Place
-
8/6/2019 Marketing Unit 1 Update
40/118
Place
The means by which products and services is got from producer toconsumer and where they can be accessed by the consumer
-The more places to buy the product and the easier it is made tobuy it, the better for the business (and the consumer?)
-
8/6/2019 Marketing Unit 1 Update
41/118
People
-
8/6/2019 Marketing Unit 1 Update
42/118
-
8/6/2019 Marketing Unit 1 Update
43/118
Process
-
8/6/2019 Marketing Unit 1 Update
44/118
Process
How do people consume services?W hat processes do they have to go
through to acquire the services?W here do they find the availability
of the service?-Contact-Reminders-Registration-Subscription
-Form filling-Degree of technology
-
8/6/2019 Marketing Unit 1 Update
45/118
-
8/6/2019 Marketing Unit 1 Update
46/118
Marketing Mix
Marketing objectivesType of productTarget marketMarket structureRivals behaviour
Global issues culture/religion, etc.Marketing positionProduct portfolio
-Product lifecycle-Boston Matrix
-
8/6/2019 Marketing Unit 1 Update
47/118
Characteristicsagegender geographic locationincomespending patternscultural backgrounddemographicsmarital statuseducationlanguagemobility
-
8/6/2019 Marketing Unit 1 Update
48/118
With a large countryMany different types of people
- It is too difficult to create a product that will satisfyeverybody, that is why we focus on a segment of the total market
B i f M k S i
-
8/6/2019 Marketing Unit 1 Update
49/118
Basis for Market Segmentation
-
8/6/2019 Marketing Unit 1 Update
50/118
G eographic
De ographic
Age, gender,fa ily size and
life cycle, orinco e
sychographicS ocial class, lifestyle,
or personality
Behavioralccasions, benefits,
uses, or responses
Nations, states,regions or cities
-
8/6/2019 Marketing Unit 1 Update
51/118
1 Segment marketingEg. A car company may think that it willtarget low income group people
2 Niche marketing: Example: The cigarettemanufacturer may have 2 niches ie:one whocomprising of people who dont care andother is the one who want to stop smoking
-
8/6/2019 Marketing Unit 1 Update
52/118
1. Homogeneous preferences2. Diffused preferences3. Clustered preferences
-
8/6/2019 Marketing Unit 1 Update
53/118
The process of evaluating segments and focusingmarketing efforts on a country, region, or groupof people that has significant potential torespond
-
8/6/2019 Marketing Unit 1 Update
54/118
W ho buys our product?W ho does not buy it?W hat need or function does it serve?W hat are customers buying to satisfy the need forwhich our product is targeted?W hat price are they paying?W hen is the product purchased?W here is it purchased?W hy is it purchased?
-
8/6/2019 Marketing Unit 1 Update
55/118
Single segment concentration:p1 to m1Selective specialisation:P1 TO M1, P2 YO M3OR ANY OTHER COMBINATION
Product specialisation:p1 to M1, M2, M3Market specialisation:ALL P to 1 MFull coverage
-
8/6/2019 Marketing Unit 1 Update
56/118
Locating a brand in consumers minds overand against competitors in terms ofattributes and benefits that the brand does
and does not offerAttribute or BenefitQuality and PriceUse or User
Competition
-
8/6/2019 Marketing Unit 1 Update
57/118
Global co nsumer culture positioningIdentifies the brand as a symbol of a particularglobal culture or segmentG
lobal teens, cosmopolitan (common to thewhole world) elites, globe-trotters (To traveloften and widely , especially forsightseeing)
-
8/6/2019 Marketing Unit 1 Update
58/118
Foreign consumer culture positioningAssociates the brands users, use occasions, orproduct origins with a foreign country or culture
Local consumer culture positioningAssociates the brand with local cultural milieu
-
8/6/2019 Marketing Unit 1 Update
59/118
This advt. by Max NY motivated parents to dream Big for their children & protect them by MAX NY Children PlanInsurance.
-
8/6/2019 Marketing Unit 1 Update
60/118
The TATA TEA JAGOO RE Campaign was meant to change thelackadaisical attitude of people towards voting & elections and
awaken them to use consciously their right to vote.
-
8/6/2019 Marketing Unit 1 Update
61/118
-
8/6/2019 Marketing Unit 1 Update
62/118
-
8/6/2019 Marketing Unit 1 Update
63/118
Launched in 1998, Parent Co TITANPioneers in the youth watches segment
Initially targeted age group of 22-32 (Early Job
seekers)Started with commercials :
cool watches from TITAN
Initial years, marketing strategies showed positivegrowth in sales.However by 2002-2003 the growth was stagnant,since its marketing strategies were unable to appealits target audience.
-
8/6/2019 Marketing Unit 1 Update
64/118
-
8/6/2019 Marketing Unit 1 Update
65/118
THE MOVE ON COMMERCIAL FROM FASTRACK
-
8/6/2019 Marketing Unit 1 Update
66/118
-
8/6/2019 Marketing Unit 1 Update
67/118
In this scheme, firms are classified based ontheir market share or dominance of anindustry. Typically there are four types of
market dominance strategies:LeaderChallengerFollowerNicher
-
8/6/2019 Marketing Unit 1 Update
68/118
strategy on the dimensions of strategic scopeand strategic strength. Strategic scope refersto the market penetration while strategicstrength refers to the firms sustainablecompetitive advantage. The generic strategyframework (porter 1984) comprises twoalternatives each with two alternativescopes. These are Differentiation and low-cost leadershi p each with a dimension ofFocus -broad or narrow.
Product differentiationCost leadershipFocus
-
8/6/2019 Marketing Unit 1 Update
69/118
- This deals with the firm's rate of the newproduct development and business modelinnovation It asks whether the company is on
the cutting edge of technology and businessinnovation. There are three types:PioneersClose followersLate followers
-
8/6/2019 Marketing Unit 1 Update
70/118
- In this scheme we ask the question, Howshould the firm grow?. There are a numberof different ways of answering that question,but the most common gives four answers:
Horizontal integrationVertical integrationDiversification
-
8/6/2019 Marketing Unit 1 Update
71/118
71
Price
PromotionProduct
Place
-
8/6/2019 Marketing Unit 1 Update
72/118
72
Goods People
Services Places
Ideas Organizations
Anything received in an exchange to satisfy a need or want
SIU
-
8/6/2019 Marketing Unit 1 Update
73/118
-
8/6/2019 Marketing Unit 1 Update
74/118
74
A good, a service, or an idea received in an exchangeIt can be tangible (a good) or intangible (a service or
an idea) or a combination of both.It can include functional, social, and psychologicalutilities or benefits.
-
8/6/2019 Marketing Unit 1 Update
75/118
-
8/6/2019 Marketing Unit 1 Update
76/118
-
8/6/2019 Marketing Unit 1 Update
77/118
77
Installations-- Facilities and non-portable major equipmentAccessory Equipment-- used in production or office activitiesRaw Materials-- Basic natural materialsComponent Parts-- become part of a productProcess Materials-- not readily identifiable when used directly in theproduction of other products (e.g. screws, knobs, handles)
MRO Supplies-- Maintenance, repair, and operating items that facilitateproduction and do not become part of the finished product
Business Services-- intangible products many organizations use inoperations (e.g. cleaning, legal, consulting, and repair services)
-
8/6/2019 Marketing Unit 1 Update
78/118
78
A P roduct Item is a specific version of a product (e.g. Gillette Trac IIrazor)
A P roduct Line is a group of closely related product items viewed as aunit because of marketing, technical, or end-use considerations (e.g.all blades & razors)
P roduct Mi x is the total set of products a firm offers for sale tocustomers (e.g. everything Gillette sells)
Product mix dimensions:Width --the number of product lines in the mixDe pth --average number of product items in each product line
-
8/6/2019 Marketing Unit 1 Update
79/118
79
F IG URE 10.1Source: Reprinted by permission of Proctor & Gamble.
-
8/6/2019 Marketing Unit 1 Update
80/118
80
Products value or features did not match customerneedsIneffective/inconsistent branding that fails to conveythe right message or image to customersTechnical or design problemsPoor market timingOverestimation of market size
Ineffective promotionInsufficient distribution
-
8/6/2019 Marketing Unit 1 Update
81/118
81
-
8/6/2019 Marketing Unit 1 Update
82/118
Products are almost always combinations of thetangible and intangible. The entire package issometimes referred to as the augmentedproduct.The mix of tangibles and intangibles in theaugmented product varies from one product orservice to another.
-
8/6/2019 Marketing Unit 1 Update
83/118
Product is a key element in the marketoffering. Marketing mix planning beginswith formulating an offering to meet targetcustomers needs or wants.
he customer will judge the offering bythree basic elements : product featuresand quality, services mix and quality, andprice appropriateness.
-
8/6/2019 Marketing Unit 1 Update
84/118
In planning its market offering, themarketer needs to think through fivelevels of the product.
Each level adds more customer value, andthe five constitute a customer valuehierarchy.
( Contd. )
-
8/6/2019 Marketing Unit 1 Update
85/118
(1)Core Product / Core Benefit : The fundamentalservice or benefit that the customer is reallybuying.
(2) Basic Product : At the same level, the marketerhas to turn the core benefit into a basic product.
(3) Expected Product : A set of attributes andconditions buyers normally expect when theypurchase this product.
-
8/6/2019 Marketing Unit 1 Update
86/118
(4) Augmented Product : he marketerprepares an augmented product thatexceeds customer expectations.
odays competition essentially takes placeat the product-augmentation level. ( Inless developed countries, competitiontakes place mostly at the expected productlevel ). ( Contd...
-
8/6/2019 Marketing Unit 1 Update
87/118
( Augmented Product )According to Levitt : he new competitionis not between what companies produce in
their factories, but between what they addto their factory output in the form of packaging, services, advertising, customeradvice, financing, delivery arrangements,warehousing, and other things that peoplevalue.
-
8/6/2019 Marketing Unit 1 Update
88/118
Some things should be noted about product-augmentation strategy :F irst, each augmentation adds cost. he
marketer has to ask whether customerswill pay enough to cover the extra cost.Second, augmented benefits soon becomeexpected benefits. F or gaining competitive
advantage one will have to search for stillother features and benefits.( odays wow ,tomorrows norm)
-
8/6/2019 Marketing Unit 1 Update
89/118
( product-augmentation strategy )hird, as companies raise the price of their
augmented product, some competitors can
offer a
S
tripped-down version at amuch lower price. hus alongside thegrowth of fine products we see theemergence of lower-cost products for theclients who simply want the basic product.
-
8/6/2019 Marketing Unit 1 Update
90/118
(5) Potential Product : encompasses all thepossible augmentations and transformationsthe product might undergo in the future.Companies search for new ways to satisfycustomers and distinguish their offer.( Successful Companies add benefits to their offering that not only satisfy customers butalso surprise and delight them. ) The best
way to hold customers is to constantly figureout how to give them more for less.
-
8/6/2019 Marketing Unit 1 Update
91/118
T he challenge before the product marketersis to create relevant and distinctiveproduct differentiation. T he productdifferentiation may be based on :
Physical ifferences ( eg., features,performance, durability, reliability, design,style, packaging )Availability ifferences ( eg., available
from stores or orderable by phone, mail,fax, internet )
-
8/6/2019 Marketing Unit 1 Update
92/118
Service ifferences ( eg., delivery,installation, training, consulting,maintenance, repair )
Price ifferences ( eg., very high price,medium price, low price, very low price )Image ifferences ( eg., symbols,atmosphere, events, media )
-
8/6/2019 Marketing Unit 1 Update
93/118
Any successful differentiation will tend todraw imitators. T he innovator faces threechoices :Lower the price to protect market share
and accept lower profits.Maintain the price and lose some marketshare and profits.F ind a new basis to differentiate theproduct and maintain current price.
-
8/6/2019 Marketing Unit 1 Update
94/118
O N T H E BASIS OF PR OD UCT CH ARACT ER IS T ICS :DURABILITY ,TANG IBILITY AND USE (consumer orindustrial )(1) N O N-DURABLE(2) DURABLE(3) SERVICES
( CO NTD . )
-
8/6/2019 Marketing Unit 1 Update
95/118
T hese are tangible goods normallyconsumed in one or few uses. Becausethese goods are consumed quickly andpurchased frequently, the appropriatestrategy is to make them available at manylocations, charge only a small mark upand advertise heavily to induce trial andbuild preference.
-
8/6/2019 Marketing Unit 1 Update
96/118
T hese are tangible goods that normallysurvive many uses. Normally require morepersonal selling and service, command ahigher margin, and require more sellerguarantees.
-
8/6/2019 Marketing Unit 1 Update
97/118
T hese are intangible,inseperable,variable and
perishable products.Normally require more quality control,
superior credibility, and adaptability.
-
8/6/2019 Marketing Unit 1 Update
98/118
O N T H E BASIS OF CUSTO MER S H O PP ING H ABIT S :
(1) C O NVENIENCE G OOD S
(2) S H O PP ING G OOD S(3) SPECIALITY G OOD S
(4) UN S O UGH T G OOD S
-
8/6/2019 Marketing Unit 1 Update
99/118
are goods that the customer usuallypurchases frequently, immediately, andwith a minimum of efforts.
(A)S
taples: Consumers purchase on aregular basis.(B) Impulse G oods: are purchased withoutany planning or search efforts.
(C) Emergency G oods: are purchased whena need is urgent.
-
8/6/2019 Marketing Unit 1 Update
100/118
are goods that the customer , in theprocess of selection and purchase,characteristically compares on such basisas suitability, quality, price and style.(A) H omogeneous Shopping G oods: aresimilar in quality but different enough inprice to justify shopping comparisons.(B) H eterogeneous Shopping G oods: differin product features and services that maybe more important than price.
-
8/6/2019 Marketing Unit 1 Update
101/118
are goods with unique characteristics orbrand identification for which buyer iswilling to make a special purchasing effort.
-
8/6/2019 Marketing Unit 1 Update
102/118
are goods the consumer does not knowabout or does not normally think of buying.T hese goods require advertising andpersonal selling support.
-
8/6/2019 Marketing Unit 1 Update
103/118
Calls for coordinated decisions on :
(1) Product Mix
(2) Product Line(3) Individual Product
(4) Service Product
-
8/6/2019 Marketing Unit 1 Update
104/118
-
8/6/2019 Marketing Unit 1 Update
105/118
T he width of companys (say H ULs)product mix refers to how many differentproduct lines the company carries, such asbathing soap, detergents, shampoos,toothpaste, food products.
-
8/6/2019 Marketing Unit 1 Update
106/118
T he length of a companys product mixrefers to the total number of items in itsproduct mix. T hus in each of the productline H UL has a number of product items.Eg., in the product line of bathing soaps,H UL has several product items like Lux,Liril, Lifebuoy, Pears.
-
8/6/2019 Marketing Unit 1 Update
107/118
T he depth of a companys product mixrefers to how many variants are offered of each product in the line. T hus if close uptoothpaste comes in three formulationsand in three sizes, Close up has a depth of nine (3x3). T he average depth of H ULproduct mix can be calculated by averagingthe number of variants within the brandgroups.
-
8/6/2019 Marketing Unit 1 Update
108/118
T he Consistency of the product mix refersto how closely related the various productlines are in end-use, productionrequirements, distribution channels, orsome other way. H ULs product lines areconsistent in so far as they are consumergoods that go through the same distributionchannels.
-
8/6/2019 Marketing Unit 1 Update
109/118
-
8/6/2019 Marketing Unit 1 Update
110/118
Product development - sales are zero,investment costs are highIntroduction - profits do not exist, heavy
expense of product introductionGrowth - rapid market acceptance andincreasing profitsMaturity - slowdown in sales growth.Profits level-off. Increase outlay tocompete
-
8/6/2019 Marketing Unit 1 Update
111/118
Decline - sales fall-off and profits drop
-
8/6/2019 Marketing Unit 1 Update
112/118
Introduction Stage:Skimming strategy :High PricePenetration: High Promotion
Growth Stage:It improves product qualityand ads new features tothe product
It adds new modelsIt increases distribution coverage
Shift from product awareness advertising toproduct preference advertisingLowers down the price to attract price sensitive
buyers
-
8/6/2019 Marketing Unit 1 Update
113/118
Maturity Stage:
Market modification:1. Converting non users
into users2.Entering new market segments3. W inning competitors customers
Product modification1. Quality improvement and2. Feature improvements
-
8/6/2019 Marketing Unit 1 Update
114/118
Marketing mix modification:1.Price2.Distribution
3.Advertising4.Sales promotion5.Personal Selling6.Services
-
8/6/2019 Marketing Unit 1 Update
115/118
Decline Stage1.Increasing the firms investment todominate the market or to strengthen itscompetitive position2.Decreasing the firms investment levelselectively by dropping unprofitablecustomer groups
3. Harvesting the investment to recover cashquickly4. Divesting the business quickly by disposingoff its assets as advantageously as possible
-
8/6/2019 Marketing Unit 1 Update
116/118
D efinition: T he factor or consideration presented by a seller as the reason that one product or service isdifferent from and better than that of the competition
-
8/6/2019 Marketing Unit 1 Update
117/118
The Unique Selling Proposition (also Unique Selling
Point ) is a marketing concept that was first proposed asa theory to explain a pattern among successfuladvertising campaigns of the early 1940s. It states thatsuch campaigns made unique propositions to thecustomer and that this convinced them to switch brands.The term was invented by Rosser Reeves of Ted Bates &Company. Today the term is used in other fields or justcasually to refer to any aspect of an object thatdifferentiates it from similar objects .
-
8/6/2019 Marketing Unit 1 Update
118/118
Head & Shoulders : "You get rid of dandruff"Olay : "You get younger-looking skin"Some unique propositions that were pioneerswhen they were introduced:
Domino's Pizza : "You get fresh, hot pizzadelivered to your door in 30 minutes or less --or it's free."FedEx : "W hen your package absolutely,positively has to get there overnight"M&M's: "The milk chocolate melts in yourmouth, not in your hand"Wonder Bread : " Wonder Bread Helps Build