Dr. Selvarasu A Mutharasu, (B.Sc.Agri.), M.B.A., Ph.D.,Professor of Marketing, Faculty of Arts, Annamalai University

A. Market Opportunities

B. Pricing Strategies

C. Distribution Strategies

D. Promotion Strategies

1. Head & Long Tail Market2. Strong versus Weak Brands3. Fair Value Map4. Strategic Leadership5. Brand Mantra6. Brand Positioning

HeadTail

STRONG WEAK

National Brand; Select Brand; Catalogue Brands; Online Brands; Economic Value of brands

Inputs▪ Marginal Cost – Fixed cost – Volume –

Variable cost – Profit Margin (Volume + Variable cost)▪ Willingness to pay▪ Competitor pressure▪ Distributor Margin

5Pricing issues:▪ Company – Financial Consideration;

Consistency in Products and its image ▪ Customer – Price sensitivity and Psychological

issues▪ Competitor – Respond to price change;

Willingness to react; Aim for position▪ Collaborator – Push and Pull; Participation in

other functions; ROA▪ Return on Asset = Profit/Asset = Profit/Sale x

Sales/Asset = Margin x Rotation

▪ Context Economy and Policies

Customer price sensitivity ▪ Ease of comparison▪ Expenditure – Volume / Share in the total ▪ Shared expenses – Employee / General

payer▪ Price/Quality – Able to distinguish and not

able to▪ Measuring Price sensitivity - Actual /

Preference

Psychological Factors▪ Odd-Even price ending▪ Mental Accounting▪ Prospect Theory (Reference Price)

PowersDirect versus IndirectStrategic Advantage of Direct

DistributionChannel FlowFunctions of distributionHybrid GridChannel conflict

Powers Sustainable competitive advantageIncreasing returnscustomer valuecostly

Direct versus Indirect9 Transaction - 6 Transactions = save 3

Transactions

Strategic Advantage of Direct DistributionErect BarriersMarket feedbackBuild margin

Functions of distributionBreak the bulkAssort AvailableCustomizeDeliverInstallMaintainRepair

Hybrid Grid - Educate - Assure QualityHandling Used containers -Monitor usage

rate

Channel conflict - Vertical versus Horizontal

Media – Time spent 12.05 Min (2013) from 11.49 (2012)Ad spending – Plus Outdoor and DirectoriesInteractive Media – Social Media, Email, Mobile, Display, Search

Marketing 21% to 35% Increase ; CAGR From 26%; 10%; 38%; 20%; 12%;

Total 17%

Digital – Online/MobileTVRadioPrint – Newspaper/MagazineOthers

7Ms FrameworkTypes : Rational versus EmotionalAdvertising Money

7Ms FrameworkMarket Audience – For Whom?Message Content – What to tell?

Mission – What to achieve?Message design – How should I say it?Media strategy – How do I reach them?Money - ??Measurement – Was it worth it?

Rational versus Emotional – Demonstration; Spokesperson; Testimonial; Comparison

Parfitt – Collins Model• Advertising Money – Goal: [%Aware] x [%Try] x

[%Repeat] = Market share• Breakeven Market share required is 6%• Market research reports 30% of customers

those who are aware try• 40% of those who try, they repeat purchase• [%Aware] x [%Try] x [%Repeat] = Market share• [%Aware] x [0.3] x [0.4] = 0.06• [%Aware] x [0.12] = 0.06 • %Aware = 0.06/[0.12] = 0.5 or 50%