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7.10.09

Wellcome to Course AI212VIndustrial Marketing

Day 3

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Management of 4 p:s

• Kotler chapters 5, 12 – 19

• CRM marketing as input form management decisions.

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Chapter 12 Product strategy

• Product is a key in the market offering.

• Market leaders generally offer products ans services of superior quality that provide unsurpassed customer value.

• Core product

• Basic product

• Expected product

• Augmented product

• Potential product

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Product classificationDURABILITY CONSUMER INDUSTRIAL

Nondurable Convenience Rawmaterial, supplies

Shopping Parts, components

Durable Specialty Capital items

Unsought Plants, large machinery

Services Services Business services

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Product differentiation

• FORM, size, shape, color, …

• FEATURES, extra functions, multi usages, …

• CUSTOMAIZON

• PERFORMANCE QUALITY

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SERVICE DIFFERENTATION

• Ordering

• Delivery

• Installation

• Customer training

• Consulting

• (Finance)

• Maintenance and repair

• Return /Test usage

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Product portfolio

• Need family

• Product family

• Product class

• Product line

• Product type

• Item

• Specialized items or everything for the customer selected?

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Branding

• Brand and company name the same

• Single brand different from company's name

• Multiple brands

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Packaging

• No package

• Consumer package

• Industrial package

• Protection, information/sales, use of

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Guarantees

• Supply service instead of product 24h-365d

• Rent of equipment during repair

• Spare parts within 48, 24 or 12 h?

• Repair, within …

• See General Electric 700.000 response cards/year

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Management of service

• 1. Listening

• 2. Reliability

• 3. Basic service

• 4 Service design

• 5 Recovery

• 6 Surprising customers

• 7 Fair play

• 8 Teamwork

• 9 Employee research

• 10 Servant leadership

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Chapter 14 Pricing strategies

• Both competitive tool and income

• Don’t let sales person set price

• Pricing strategies

• Skimming price

• Penetrating price

• Extras – free or as the important TB generator?

• Price elasticity

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Economy of price and production cost

• Cost calculation

• Breakeven analysis

• Budget and market response

• Discounts ?

• Price adjustments + or –

• Trolles matrix

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Trolles formula

• Change in volume without change in contribution (TB) = NEW Volume        

•   Present volume = 100      

• Present TB in %   10 20 30 40                

• Price change 20     33 50 60 66,6

• in % of cost

• 10     50 66,6 75 80  

• 5     66.6 80 86 89        

• 100        

• -5     200 133 120 114  

• -10     n 200 150 133  

• -20     n n 300 200

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Chapter 15Designing and managing integrated

Marketing Channels• Single or multi layer channels

• Multi brands or same brand in channels

• Function/role of channels

– transport in time and room, finance, risk, communication.

• Functions allocated to channels – Hybrid ch.

• Customer desire

- Lot size, delivery time, convenience, varity, service.

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Cost per transaction

Internet

Telemarketing

Retailstores

Distributors

Sales force

Partner

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Cost of transaction

• Selling cost

Level of sales

Representative

Manufactures

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Brick and click

• Pure click

• Combinations

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Promotion Chapter 17Marketing communication

• Communication two way – but one way most …

• Steps

1 Advertising

2 SP, Sales Promotion

3 Events, experiences

4 PR, Public Relations

5 Direct marketing

6 Interactive marketing

7 Word of mouth

8 Personal selling

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Communication model

AIDA s

SENDERSENDER Coding Media Decoding RECIVERMessage

Noise

Feedback

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Communication budget

• Affordable

• % of sales

• As competitor

• Objective

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Marketing mix and measurement

• Marketing mix and coordinantion

• Allocation of sales budget

• Measurement

• Part of marketing research

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Chapter 18Managing mass communication

• Timing

• Selection of media

• Response to competitor

• Noise level

• Product live cycle and argument in communication

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Chapter 19Direct sales - Personal selling

• Mail order – internet

• Catalog

• Telemarketing – mobile marketing

• Sales force – in retail shops,

in the street,

knocking on the doors etc.

Industrial sales force