8/7/2019 markeing

1/19

Managing a Business/Marketing for managerAdvertisement

Expert: Leo Lingham - 3/7/2009

Question1.(a) Marketing involves much more than selling and advertising explain.

(b)how would you apply your knowledge of marketing concept to create awareness and communicate the perils in

the following : a) smoking b) Safe driving habit.

2. what is STP strategy? Briefly discuss the concept of positioning. what is the positioning of :a) Nano car from Tata

b) Airtel - DTH service

b) Discuss the major considerations involved in designing the marketing organization. Make an attempt to study

the organization you are associated or familiar with and report its findings

3 a) Pakaging is considered as the fifth "p" of the Marketing Mix . What makes it so? Bring out the strategicimportance and relevance as a vital tool of product decisions.

b) How and why the concept of product life cycle is used as tool for market development ? Explain with two

examples of your choice.

4 a) Explain the major objectives of advertising and publicity with suitable example.

b) Distinguish primary data from secondary data. What are the merits, demerits and limitations?

Get the answer below

Sponsored Links

Survive to ThriveHow to survive in advertising by the original Mad Man: Phil

Geierwww.survivetothrivethebook.comImport Goods from ChinaFedEx Launches New Flight between India and China. Open an A/c

Now!FedEx.Business-Shipping.comMulti Unit FranchisingBusiness Expansion & Growth Advice Conference in Mumbai on Feb 18-

19www.franchiseindia.orgWLC Management CoursesBusiness Prog In Marketing, Finance & HR for PG Students. Join

Now!www.wlci.in/finance-marketing

AnswerKIRAN,

HERE IS SOME USEFUL MATERIAL.I CAN FIT ONLY 1 /2a ANSWERS.

I CANNOT THE ANSWERS FOR 3/4.PLEASE SEND THEM AGAIN AS FRESH Qs.

REGARDS

LEO LINGHAM

===============================

1. a) "Marketing involves much more than selling and advertising." Explain.

DEFINITION OF MARKETING.

What is Marketing ?

It is a process by which

-one identifies the needs and wants of the people.-one determines and creates a product/service to meet the needs

and wants. [PRODUCT]-one determines a way of taking the product/service to the market

place. [PLACE]-one determines the way of communicating the product to the

8/7/2019 markeing

2/19

market place. [PROMOTIONS]

-one determines the value for the product.[PRICE].

-one determines the people, who have needs/ wants. [PEOPLE]

and then creating a transaction for exchanging the product fora value.

and thus creating a satisfaction to the buyer's needs/wants.

TERMS to understand.1.Product/Service means a product or service or idea to satisfy

the people's needs / wants.2.Needs mean when a person feels deprived of something.

3.Wants mean when a person's need is formed / shapedby personality, culture, and knowledge.

4.Value means the benefits that the customer gains fromowning and using the product and the cost of the product.

5.Satisfaction means the extent to which a product'sperceived performance matches a buyer's expectation.

6.Exchange means the act of obtaining a needed/ wantedobject by offering something in return.

7.Transactions mean a trade off between a buyer / a sellerthat involves an exchange at agreed conditions.

Marketing is based on identifying, anticipating and satisfying customer needs effectively and profitably.

It encompasses- market research,

-product planning / development ,-product pricing,

-product marketing-SALES

-promotion,-distribution,

-customer care,-BRANDING

-merchandising-retailing

-website marketingand much more.

FROM THE ABOVE, YOU WILL SEE ''SALES'' IS

ONE OF THE ELEMENTS OF TOTAL MARKETING.=======================================================================

====

DEFINITION OF SALES

What is Sales ?

It is a process by which

-one identifies the people, who have a need. [ PROSPECTING]

-one determines the needs of the people.[ NEEDS ]

-one determines a way of finding a solution to the prospect's problem.[ PROPOSE]

-one determines the way of communicating your product as a solution. [RECOMMENDING]

-one determines the value for the product for the prospect.[ ADVOCATING YOUR PRODUCT].

-one determines / sells benefits of the product to the prospect. [ SELLING BENEFITS]

and then creating a transaction for exchanging the product fora value. [ CLOSING THE SALE ]

8/7/2019 markeing

3/19

and thus creating a satisfaction to the buyer's needs/wants.[ CREATING CUSTOMER SATISFACTION]

=============================================

SCOPE OF MARKETING-----------------------------------------------------

Establish , direct, administer and coordinate the overall product marketing

programs for all Products..

Strategically plan for, develop and profitably penetrate the markets to

which the products, services and capabilities of the company canbe directed. These activities include

-studying economic indicators-tracking changes in supply and demand

-identifying customers and their current and future needs-monitoring the competition.

=========================================================ROLE OF MARKETING IS

-- based on identifying, anticipating and satisfying customer needs effectively and profitably. It encompasses

market research, pricing, promotion, distribution, customer care, your brand image and much more.THIS ALSO INCLUDES

*Market research to determine consumer needs.*Prototype product development

*Product testing*Product development

*Product planning*Pricing of products

*Test Marketing*Developing marketing strategy

*Development of Market Planning*Sales Planning

*Distribution Planning*Advertising planning

*Sales Promotions Planning*Merchandising Planning

*Retail marketing*Marketing Research.

*Customer servicing*Conducting marketing audit

ALSO INCLUDES

*Review brand, its image and what it stands for*Consider the consistent use of a strap line in your advertisements

*Launch a website and think about e-marketing and interactive website pages to add value

*Adopt the correct pricing strategy for your market sector, competitors, customers & profit*Create a database of all your customers so that you can market to them again

*Know your customers - find out where they are spending their time and money*Employ specialists for website creation or use external experts in the field

*Use external professionals for press releases*Support anyone wanting to train in marketing

*Have a consistent brand message on all literature, websites, business cards & letter heads*Create a mission statement

*Always plan properly, there are packages such as Microsoft Project which can help

*Use market research to understand your competitors, spot opportunities and lessen risks*Use the database to market either by postal campaigns, e-mail or even mobile marketing

*Advertise in the correct places, and analyse and learn from each campaign*Enlist professional designers for your literature, business cards and logos

===================================================MARKETING SUBFIELDS INCLUDE

*Marketing Concept.

* strategic marketing management*Understanding the Competitors.

8/7/2019 markeing

4/19

* marketing research.

*market forecast.*Buyer Behavior.

*consumer behavior*organizational buyer behavior.

*Marketing Strategy*Strategic market Planning

*Market Development.

*marketing environments*marketing strategies*marketing planning.

*TRADE MARKETING MANAGEMENT*Marketing Plan.

*developing a marketing plan.*executing/implementing a marketing plan.

*market segmentation*market targeting.

*market positioning.*product marketing

*Channel marketing*New Product Development & Strategy.

*new product development process.*new product commercialization.

*Product Pricing Considerations and Approaches.*pricing principles.

*pricing strategy*Marketing Logistics

*marketing channels.*physical distribution.

*Marketing Decision Making*Marketing Mix.

*promotions*selling

*publicity*online marketing

*direct marketing.*marketing communication

*branding*advertising

*telemarketing*test marketing

*product planning*sales development

*sales planning*sales organization

*trade marketing

*merchandising*retail marketing

*customer servicing*SELF SERVICE MARKETING

=================================================MARKETING PLANNING / IMPLEMENTATION INVOLVES

STUDY OF Current Situation - MACROENVIRONMENT

economy

legalgovernmenttechnology

ecologicalsociocultural

supply chainSTUDY OF Current Situation - MARKET ANALYSIS

market definitionmarket size

market segmentationindustry structure and strategic groupings

8/7/2019 markeing

5/19

Porter 5 forces analysis

competition and market sharecompetitors'strengths/ weaknesses

market trendsCurrent Situation - Consumer Analysis

nature of the buying decisionparticipants

demographics

psychographicsbuyer motivation and expectationsloyalty segments

Current Situation - Internalcompany resources

financialpeople

timeskills

objectivesmission statement and vision statement

corporate objectivesfinancial objective

marketing objectiveslong term objectives

corporate cultureSummary of Situation Analysis

external threatsexternal opportunities

internal strengthsinternal weaknesses

key success factors in the industryour sustainable competitive advantage

MARKETING RESEARCHinformation requirements

research methodologyresearch results

Marketing Strategy - tPRODUCTPRODUCT MIX

product strengths and weaknessesPERCEPTUAL MAPPING

PRODUCT LIFE CYCLE MANAGEMENT/ NEW PRODUCT DEVELOPMENTBRAND, brand image, and BRAND-EQUITY

the AUGMENTED PRODUCTproduct PORTFOLIO analysis

B C G ANALYSISCONTRIBUTION MARGIN ANALYSIS

GE MULTI FACTORAL ANALYSIS

QUALITY FUNCTION DEPLOYMENTMarketing Strategy - MARKET SHAREobjectives

by products,by customer segments,

by geographical marketsMarketing Strategy - PRICE

PRICING OBJECTIVESpricing method (eg.: cost plus, demand based, or competitor indexing)

pricing strategy (eg.: skimming, or penetration)

DISCOUNTS AND ALLOWANCESPRICE ELASCITY and customer sensitivityPRICE ZONING

BREAK EVEN ANALYSIS at various pricesMarketing Strategy - PROMOTIONS

promotional goalspromotional mix

ADVERTISING reach, frequency, flights, theme, and mediaSALES FORCE requirements, techniques, and management

SALES PROMOTIONSPUBLICITY and PUBLIC RELATIONS

8/7/2019 markeing

6/19

electronic promotion (eg.:WEBSITE or TELEPHONE)

Marketing Strategy - DISTRIBUTIONgeographical coverage

distribution channelsphysical distribution and logistics

electronic distributionImplementation

personnel requirements

assign responsibilitiesgive INCENTIVEStraining on selling methods

financial requirementsMANAGEMENT INFORMATION SYSTEMS requirements

month-by-month agendaPERT or CRITICAL analysis

monitoring results and benchmarksadjustment mechanism

contingencies (What if's)Financial Summary

assumptionspro-forma monthly income statement

CONTRIBUTION ANALYSISbreakeven analysis

MONTE CARLO METHODScenarios

Prediction of Future ScenariosPlan of Action for each Scenario

=====================================================THE OBJECTIVES OF MARKETING

FIRST --PRIME OBJECTIVE OF MARKETING

-is to support and help the organization to achieve the CORPORATE OBJECTIVES.--------------------------------------------------------------

SECOND OBJECTIVE-THE SECOND IMPORTANT OBJECTIVE OF MARKETING is to

enable the organization survive and prosper through meeting needs andwants of customers by matching a company's

capabilities with customer needs / wants.--------------------------------------------------------------

THIRD OBJECTIVE

-to provide an agreed. consistent and well directed target range of volume

for all departmental functions, which will help them to streamlinetheir activities for the period.

*finance

*manufacturing/ production*human resource

etc etc-------------------------------------------------------------------

FOURTH OBJECTIVE

-to provide the marketing department a toolto plan and manage its activities, THROUGH MARKETING PLAN.

-----------------------------------------------------------------------------

FIFTH OBJECTIVE-TO provide a stretch points for setting sub-objectives /planning/ strategies

for MARKETING DEPARTMENT.*market share target.

*competitive standing target.*customer awareness target..

*customer retention target*new products target

---------------------------------------------------------------------

8/7/2019 markeing

7/19

SIXTH OBJECTIVE

-to provide a method devised to achieve the objectivesin the promotion MIX.

---------------------------------------------------------------------------

SEVENTH OBJECTIVE-TO provide a stretch points for setting sub-objectives /planning/ strategies

for SALES MANAGEMENT

*product coverage.*customer coverage.*geographical area coverage.

etc-------------------------------------------------------------------

EIGHTH OBJECTIVE

-TO provide a stretch points for setting sub-objectives /planning/ strategiesfor DISTRIBUTION MANAGEMENT

*distribution penetration target.-------------------------------------------------------------------------

NINTH OBJECTIVE

-TO provide a stretch points for setting sub-objectives /planning/ strategiesfor CUSTOMER SERVICE MANAGEMENT

*customer satisfaction level.------------------------------------------------------------------

TENTH OBJECTIVE

-TO provide a stretch points for setting sub-objectives /planning/ strategiesfor OVERALL CONTROL THROUGH RESEARCH.

*consumer research.*customer satisfaction surveys.

*internal operation research.*distribution study

*marketing researchetc etc

===============================================THE OBECTIVES OF MARKETING COULD ALSO INCLUDE

SETTING METRICS FORmarket share

totalby segments

by channelcustomers

totalnumber/percentage new

number/percentage retained

purchasesrate of purchases

size/volume of purchasesPromotional objectives

level of brand/company awarenesstraffic building

(e.g., store traffic, website traffic)product trials

(e.g. sales promotions, product demonstrations)

sales force(e.g. cycle time, cost per call, closing rate, customer visits, etc.)Channel objectives

dealerstotal

number/percentage newnumber/percentage retained

order processing and deliveryon-time rate

shrinkage ratecorrect order rate

8/7/2019 markeing

8/19

Market research objectives

studies initiatedstudies completed

R&D objectivesproduct development

Other objectivespartnerships developed

AwarenessBefore a customer buys your product or service they must become aware of it. Awareness is particularly importantif you have a new product or service, if your product or service is only bought occasionally or if your market has

many competitors and you need to maintain awareness amongst your target market. For example, your objectivemay be to increase awareness of brand X by 20% by June 2009.

Purchase

This relates to the initial purchase and the purchase of specific products or services in your range. For exampleyour objective may be to increase initial purchase of service X from 5% to 9% by June 2009.

Purchase frequency

This relates to how often your customers buy your product or service. For instance if you have a product or servicethat has a high gross margin, then you may want your customers to buy it on a regular basis as this will increase

the profitability of your business.

UsageThis is different to purchase as the person who buys your product or service may not be the one who actually uses

or consumes it. For example, mothers may buy the breakfast cereal but it is the children who are the ones who eatit.

Usage frequency

This relates to how often your customers use/consume your product or service. By getting your customers to use alittle more of your product or service can actually translate into more sales over the year. Big business marketers

often do this by introducing larger pack sizes.

Average transaction valueThis relates to the average amount each of your customers spends per transaction with your business. A simple

way of improving the profitability of your business is to encourage your existing customers to increase theiraverage transaction value i.e. purchase slightly more each time.

Distribution

As distribution channels available to customers grow, it is important that you ensure your products or services areavailable in the most important distribution channels for your market so that your customers dont switch to your

competitors.

CustomersFor your small business to grow you may decide to focus on gaining new customers for your business or to retain

your most profitable ones.

======================================================WHAT A MODERN MARKETING ORIENTED ORGANIZATION DOES

FOR ACHIEVING SUCCESS IN ITS FIELD.

- market research,[conducts marketing research continuosly--pre-product/during product launch/

during the maturity/ consumer research/retail research/test marketing etc etc==================================================

-product planning / development ,

[they plan/ develop products in a scientific manner, tailoringit to the exact taste of the consumers]=====================================

-product pricing,[conduct price research and position the price point

where the consumer can afford / the company makes good profit.]==========================================

-product marketing[the company conducts one of the most effective product marketing

programs in the world.]==============================================

8/7/2019 markeing

9/19

-SALES

[the company has a wide network of sales representativesin almost over 180 countries]

======================================-promotion,

[the company applies varieties of promotions includingsales promotion/trade promotion/consumer promotion/

advertiisng/ public relations ]

=============================================-distribution,[when it comes to distribution, they have an unmatched distribution network.

they go for extensive and intensive coverage of the market---that coverssupermarkets/corner stores/gas stations/ schools/colleges/convenience stores/sports complex etc

================================================-customer care,

[the company has a well crafted customer care program forthe consumers.]

============================================-BRANDING

[when it comes to branding, they are second to none in the world''COKE'' say no more]

=====================================-merchandising

[the company has an extensive program on merchandising likeexternal displays / internal displays ]

==========================================-retailing

[ the company has a strong presence in the retail fieldsupported by active merchandisers]

====================================-strategic marketing management

[the company has a strong team to manage thestrategic aspects of market--it is highly research based]

==============================================-market forecast.

[the company uses the finest software to developthe demand planning and market forecast and sales forecast]

==============================================-consumer behavior

[the company continuously monitors the consumer behaviorwith respect their products]

=====================================-organizational buyer behavior.

[the company continuously monitors the organization buying behaviorwith respect their products ---like schools/ colleges/ business houses]

==========================================

-Strategic market Planning[the company has a strong team to manage the

strategic aspects of market--it is highly research based]=============================================

-Market Development.[ the company develops the market through

*geographical coverage increase.*current customers usage increase

*new customers increase

etc============================================-marketing environments

[the company is sensitive to the environmentand has a number of societal marketing programs.

================================================-market segmentation/ targeting

[THE company uses the segmentation techniquesheavily targeting the ''15 --45'' age group]

====================================-field sales planning / development

8/7/2019 markeing

10/19

[the company carries out regular field sales

planning and development program to sharpen/ tunethe field sales team.

===================================ADDITIONALLY,

THE COMPANY TAILOR ITS MARKETING PRACTICES

Successful businesses focus on getting the basics of marketing right.

Marketing is based on identifying, anticipating and satisfying customer needs effectively and profitably. Itencompasses market research, pricing, promotion, distribution, customer care, your brand image and much more.

Some of the things that the company does in marketing practices is to:*Have a marketing team or individuals who have qualifications in marketing

*Review brand, its image and what it stands for*Consider the consistent use of a strap line in the advertisements

*Launch a website and think about e-marketing and interactive website pages to add value*Adopt the correct pricing strategy for the market sector, competitors, customers & profit

*Create a database of all the retailers so that you can market to them again*Know your consumers - find out where they are spending their time and money

*Employ specialists for website creation or use external experts in the field*Use external professionals for press releases

*Support anyone wanting to train in marketing*Have a consistent brand message on all literature, websites, business cards & letter heads

*Create a mission statement*Always plan properly, there are packages such as Microsoft Project which can help

*Use market research to understand competitors, spot opportunities and lessen risks*Use the database to market either by postal campaigns, e-mail or even mobile marketing

*Advertise in the correct places, and analyse and learn from each campaign*Enlist professional designers for literature, business cards and logos

*Stick to what you do best and let the experts help with their specialist knowledge.#################################################################

1 b) How would you apply your knowledge of marketing concept to create awareness andcommunicate the perils in the following :

a) Smokingb) Safe driving habit

Creating awareness is an important first step toward building audience understanding, influencing opinion andmotivating behaviour. But there's a lot more than meets the eye to executing a successful awareness campaign

and a lot more to it than enlisting the help of recognizable faces. Commanding audience attention is not as easy asit might appear.

MYRIAD MESSAGESOver-communication is a way of life. Information bombards the senses from every conceivable source, every

waking moment of the day. Communication channels have mushroomed. Not only are there more choices withinmediums, but also more mediums to choose from.

At the end of 2002, global use of the Internet was pegged at more than 600 million people--a number thatincreases every day. At 500,000 words, it would take the average person 28 hours to read a Sunday edition of The

New York limes. An 8-ounce container of cereal carries about 1,500 words of copy, and General Motors spendsUS$365,000 a day to promote Chevrolet in the U.S. market. A 30-second commercial on the popular sitcom

'Friends" costs an average of US$455,700, followed closely by "ER" and "Survivor." But if any old prime time slotwill do, the average cost for 30 seconds of airtime is US$115,799.

And that's just the external environment. The internal environment is no less inundated. The competition for shareof mind has never been greater. Yet the channels are congested and only a tiny fraction of messages actually get

through. Make no mistake, the human mind is capable of holding only so much information.

ATTENTION-GETTING TACTICSCommunicators are face to face with an important challenge: In an information-overloaded society, how do you

command attention in a way that creates and anchors awareness? Much of the advertising industry's success hasbeen guided by these seven principles.

1. Without research, you're only guessing. Alice's Cheshire cat said, "If you don't know where you're going, anyroad will do." The success or failure of awareness campaigns depends on the skill of the strategist to clearly

understand the audience-who they are, what they think and how to influence their perceptions. Brand gurus callthis "finding a window into the mind."

Enter audience research, Although there is much controversy about the validity of research and different methods,so far no one has come up with a better idea. How do you know what the audience thinks? You ask. How do you

8/7/2019 markeing

11/19

know what will influence choice? You study. How do you know whether the message is meaningful and memorable?

You test.2. Answer the question "What's in it for me?" Competing for audience attention is not for the faint of heart. People

come in all shapes and sizes, with pre-conceived ideas and opinions that influence your ability to deliver amessage.

The human mind operates like a computer, with one important difference: A computer accepts whatever you keyinto it. The mind does not. The human mind rejects information that doesn't match prior knowledge or experience.

The easiest way to create awareness is to build on something that is already familiar. Make it relevant. Make it

real. Make it personal. Effective communication answers "What's in it for me?" or "Why should I care?"3. People respond to emotion. Forget the logic. Find the emotional hot buttons. Make the audience feel something.Logic-based communication presents the facts but does not engage the audience. Ideas that create an emotional

experience build a personal connection with each individual. Awareness is more easily gained if you can touch theaudience with a memory. Effective communication first speaks to the heart. The head and hands will follow.

4. Keep the creative focus on strategy. Develop a creative brief to keep you focused. A creative brief links thestrategy to the creative execution of the messages. It is here that all the analytical thinking is transformed into

razor-sharp direction that becomes a foundation for the creative idea that will drive the message home.Completing a creative brief is easy, providing you've done your homework:

* Why are you communicating?* What is the strategy trying to achieve?

* Who are you talking to?* What do you know about them?

* What do they think?* What do you want them to think?

5. Less is more. Keep the idea simple and the execution free of clutter and verbosity. The reading vocabulary of theaverage person is about 8,000 words. The speaking vocabulary is less. Add limited time and competing agendas to

the mix and there is no doubt that only the strong survive. Cutting through the clutter depends heavily on thewriter's ability to serve up a sharply focused message that gets right to the point.

6. Align the media with the audience. Use a rifle, not a shotgun. With all the noise in the environment, getting theright message to the right audience has never been as challenging. The strategy? Be selective in the choice of

media vehicles and channels.Segment the market, define the audience and find out where they live. What are their media habits--favourite

magazines, television programs, radio preferences? Are they likely to be online? Would you find your audience at afootball game, in a coffee shop or both?

7. Once is never enough. Frequency builds top-of-mind awareness. Audiences must receive the same message aminimum of four times before it starts to sink in.

Combining above-and below-the-line tactics, use a variety of vehicles to deliver the message. A multimediacampaign anchored by television might be supported by outdoor and print. But don't stop there. Reinforce the

program with media relations and special events.Visible, consistent messages delivered over an extended period of time are more likely to be noticed and

remembered. That is why people choose Heinz[R] over other ketchup or Kleenex[R] over other brands of tissue.The audience is constantly reminded to think of the brand name first. The same principle holds true for awareness

initiatives.============================================

An effective media can raise the awareness level and can also bring about sustainable behavior change therebyreducing vulnerability to the Smoking PERILS / Safe driving HABIT.

Media is capable of performing the following roles in preventing Smoking PERILS / Safe driving HABIT.

A Channel for communication and Discussion: One of the roles of Media is to open the channels for communication

and foster discussions about Smoking PERILS / Safe driving HABIT and Addressing Smoking PERILS / Safedriving HABIT in the entertainment programs can have an enormous impact on the society at risk.

A vehicle for Creating a supportive and enabling environment : Mass media can be instrumental in breaking thesilence that envelopes the Smoking PERILS / Safe driving HABIT and in creating an encouraging behavior for

combating with existing social norms and making positive changes in the society.

Facilitator for removing Stigma and discrimination attached with the Smoking PERILS / Safe driving HABIT

A number of media campaigns have focused on the need to overcome prejudice and encourage solidarity withpeople who have given up such habits.A tool for creating a knowledge base for Smoking PERILS / Safe driving HABIT

related services: The collaborative efforts of all modes of media in association with NGOs State organizations,service providers have brought to the lime light the availability and source of beneficial services like counseling,

testing and other provisions, treatment and social care. The broadcasters and print media have a specific role toplay as their efforts have tremendous recall value.

Education through entertainment: For creating an efficacious awareness about Smoking PERILS / Safe driving

HABIT, the messages need to be informative, educative as well as entertaining as these are mutually exclusive.

8/7/2019 markeing

12/19

The education of Smoking PERILS / Safe driving HABIT

has to be spread as if we are selling the product. Thus, a holistic approach for dealing with the emotional,psychological and physical realities is to be adopted.

Mainstreaming: Broadcasters are mainstreaming the Smoking PERILS / Safe driving HABIT

issue across a number of programs, ensuring that the message permeates a diverse range of output , not justoutlets and public service messages dedicated specifically to the issue.

Putting Smoking PERILS / Safe driving HABIT

on the News agenda and encouraging leaders to participate: In recent years several leading broadcasters fromaround the world have found innovative ways to report on the subject.

Sharing resources ad pooling material: Several campaigns were successful as they fully utilized the opportunity ofpooling the available resources with others by sharing expertise and material.

Capacity Building: Successful partnerships need not be with other media outlets. Alliances of NGO, Governmentdepartments and foundations can bring significant benefit for both the parties.

Media as an institution of oversight, restraint and collaborative efforts: Media can render yeoman service in

providing accurate and correct news coverage of Smoking PERILS / Safe driving HABITfacilitate eliciting and generating public response to state sponsored efforts. Such efforts have the potentials to

awaken social and political leaders to review their strategies and take mid course corrections in regard to policyconcerning Smoking PERILS / Safe driving HABIT

.In such a process, the media has the potential to influence public opinion and attitudes about Smoking PERILS /

Safe driving HABIT

Media too have the capability to bring about transformation in the thinking pattern of the society and thus sowingthe seeds of attitudinal changes. The media can be a great facilitator for preventing process while imparting the

need for a healthy behavior towards the section of the society and those individuals most vulnerable toSmoking PERILS / Safe driving HABIT and those individuals affected by

###########################################################2. a) What is STP strategy? Briefly discuss the concept of positioning. What is the positioning

of :a) Nano car from Tata

b) Airtel DTH serviceMarket Segmentation

A Market segment is a subgroup of people or organizations sharing one or more characteristics that cause them to

have similar product needs.Market segmentation is the process in marketing of dividing a market into distinct subsets (segments) that behave

in the same way or have similar needs. Because each segment is fairly homogeneous in their needs and attitudes,they are likely to respond similarly to a given marketing strategy. That is, they are likely to have similar feelings

and ideas about a marketing mix comprised of a given product or service, sold at a given price, distributed in acertain way and promoted in a certain way.

Broadly, markets can be divided according to a number of general criteria, such as by industry or public versusprivate sector. Small segments are often termed niche markets or specialty markets. However, all segments fall

into either consumer or industrial markets. Although it has similar objectives and it overlaps with consumer

markets in many ways, the process of Industrial market segmentation is quite different.The overall intent is to identify groups of similar customers and potential customers; to prioritize the groups to

address; to understand their behaviour; and to respond with appropriate marketing strategies that satisfy thedifferent preferences of each chosen segment. Revenues are thus improved.

Improved segmentation can lead to significantly improved marketing effectiveness. With the right segmentation,the right lists can be purchased, advertising results can be improved and customer satisfaction can be increased

The purpose for segmenting a market is to allow your marketing/sales program to focus on the subset of prospects

that are "most likely" to purchase your offering. If done properly this will help to insure the highest return for your

marketing/sales expenditures. Depending on whether you are selling your offering to individual consumers or abusiness, there are definite differences in what you will consider when defining market segments.

Category of NeedThe first thing you can establish is a category of need that your offering satisfies. The following classifications may

help.

For businesses:Strategic - your offering is in some way important to the enterprise mission, objectives and operational oversight.

For example, a service that helped evaluate capital investment opportunities would fall into this domain ofinfluence. The purchase decision for this category of offering will be made by the prospect's top level executive

8/7/2019 markeing

13/19

management.

Operations - your offering affects the general operating policies and procedures. Examples might be, an employeeinsurance plan or a corporate wide communications system. This purchase decision will be made by the prospect's

top level operations management.Functional - your offering deals with a specific function within the enterprise such as data processing, accounting,

human resources, plant maintenance, engineering design, manufacturing, inventory control, etc. This is the mostlikely domain for a product or service, but you must recognize that the other domains may also get involved if the

purchase of the product or service becomes a high profile decision. This purchase decision will be made by the

prospect's functional management.

For the individual consumer:

Social Esteem or Pleasure - your offering satisfies a purely emotional need in the consumer. Examples are a minkcoat or a diamond ring. There are some products that are on the boundary between this category and the

Functional category such as a Rolex watch (a Timex would satisfy the functional requirement and probably keeptime just as well).

Functional - your offering meets a functional requirement of the consumer such as a broom, breakfast cereal orlawnmower.

Segmentation of Needs FOR BUSINESS ORGANIZATIONS

Then you should establish what the need is and who is most likely to experience that need. Your segmentation will

be determined by a match between the benefits offered by your offering and the need of the prospect. Some"need" categories for segmentation include:

Reduction in expensesProspects might be businesses that are downsizing (right sizing), businesses that have products in the mature

stage of their life cycle or individuals with credit rating problems.Improved cash flow

Prospects might be businesses that have traditionally low profit margins, businesses that have traditionally highinventory costs or individuals that live in expensive urban areas.

Improved productivityProspects might be businesses that have traditionally low profit margins, businesses that have recently experienced

depressed earnings or individuals with large families.Improved manufacturing quality

Prospects might be businesses with complex, multi-discipline manufacturing processes.Improved service delivery

Prospects might be service businesses in highly competitive markets, product businesses requiring considerablepost-sale support or individuals in remote or rural areas.

Improved employee working conditions/benefitsProspects might be businesses where potential employees are in short supply.

Improvement in market share/competitive positionProspects might be new entrants to a competitive market.

Need for educationProspects might be businesses or individuals looking for books on business planning, or seminars on Total Quality

Management.Involvement with social trends

Prospects might be businesses concerned with environmental protection, employee security, etc. or individuals who

believe in say 'no' to drugs, anti-crime, etc.Specific - relating to product/service characteristics

Prospects might be businesses or individuals interested in safety, security, economy, comfort, speed, quality,durability, etc.

Factors that segment prospects

Having determined the more general segmentation characteristics you can proceed to a more detailed analysis ofthe market. There are literally thousands of ways to segment a market, but the following are some of the more

typical segmentation categories.

For businesses:Industry by SIC code

This is especially beneficial for vertical market offerings.Size - revenues, # employees, # locations

In general if your offering is highly sophisticated, requires significant resources or provides greater value based onvolume, then the target should be the larger enterprises.

Job position/responsibilityExamples of offerings might be planning software for managers or cleaning agents for maintenance managers.

ClimateExamples of offerings might be dehumidifiers in areas near the ocean or snow plows in northern areas.

8/7/2019 markeing

14/19

Time related factors

Some services in this category are vacation related industries in summer and tax planners in the spring.Language

An example of a language specific service is a Spanish TV channel.Status in the industry

You might want to target businesses that are the technology leader or revenue leader or employee satisfactionleader, etc.

Accessibility

To minimize promotion and sales expense you may want to target urban rather than rural or local rather thannational prospects.Future potential

A good example is how Apple Computer supplied products to schools at all levels to condition students graduatinginto the marketplace.

Ability to make a quick purchase decisionTargeting individual purchasers versus business committees can significantly reduce marketing expense and

increase the probability of a quick close.Access (or lack of access) to competitive offerings

Cable TV business's significant investment in their service delivery system has allowed a near monopoly for sometime. IBM's service reputation insured minimal competition during the mainframe days.

Need for customizationOfferings such as police cars, busses for municipalities and specialized computer systems fall into this category.

Product or service application to a business functionExamples are data processing, accounting, human resources and plant maintenance.

============================================For Individual Consumers:

Physical SizeOfferings might be big men's clothing, golf clubs for shorter players, etc.

Creation of or response to a fadExamples are hula hoops, Jurassic Park T-shirts, pet rock, physical fitness, etc.

Geographic locationMarketers take advantage of location by selling suntan lotion in Hawaii, fur coats in Alaska, etc.

Time related factorsYou may be able to target vacationers in summer, impulse buyers during the holidays or commuters at 7AM.

Demographics/culture/religionEthnic products would fall into this category.

GenderProduct examples are scarves for women, ties for men, etc.

AgeProduct examples are toys for children, jewelry for women, etc.

Social statusThis could include country club memberships, philanthropic contributions, etc.

EducationProduct and service examples are encyclopedias, scientific calculators, learning to read tools and financial

counseling.Avocation

This could include products for hunting, fishing, golf, art work, knitting, etc.

Special InterestsYou could target cat lovers, science fiction readers, jazz music collectors, etc.

AccessibilityBecause the individual is more difficult to reach you may want to segment by urban versus rural, train commuters,

people who read Wall Street Journal, etc.Access (or lack of access) to competitive offerings

Due to high investment capital requirements or timing of market entry you may be able to capture a significantmarket share in a specific geographical area. Examples might be a trash service, emergency medical support, etc.

Need for specific information

Based on features or content of your offering you can target a market segment. A product might be books on howto start a business or a service might be seminars on how to quit smoking.Need for customization

Product/service examples are home decoration, fashion wear, personal portraits, etc.Need for quality, durability, etc.

Product examples are mountain climbing gear, carpenter's tools, etc.Degree of a product/service ingredient

Segmentation based on prospect preferences is common. An example is dark chocolate for some tastes, lightchocolate for others.

========================================================================

8/7/2019 markeing

15/19

While market segmentation can be done in many ways, depending on how you want to slice up the pie, three of

the most common types are:Geographic segmentation based on location such as home addresses;

Demographic segmentation based on measurable statistics, such as age or income;Psychographic segmentation based on lifestyle preferences, such as being urban dwellers or pet lovers.

If youre interested in target marketing, the first step is to do the research that will help you define and zero in onyour target market.

================================================================

The requirements for successful segmentation are:homogeneity within the segmentheterogeneity between segments

segments are measurable and identifiable segments are accessible and actionable

segment is large enough to be profitable------------------------------------------------------------------------

These criteria can be summarized :D Differential: it must respond differently to a different marketing mix

A Actionable: you must have a product for this segment to be accuredM Measurable: size and purchasing power can be measured

A Accessible: it must be possible to reach it efficientlyS Substantial: the segment has to be large and profitable enough

=================================================================The variables used for segmentation include:

1.Geographic variables

region of the world or country, East, West, South, North, Central, coastal, hilly, etc.country size/country size : Metropolitian Cities, small cities, towns.

Density of Area Urban, Semi-urban, Rural.climate Hot, Cold, Humid, Rainy.

2.Demographic variables

-age

-gender Male and Female-sexual orientation

-family sizefamily life cycle

Education Primary, High School, Secondary, College, Universities.income

occupationeducation

3.socioeconomic status

religion

nationality/race

language

4.Psychographic variables

personalitylife style

valueattitude

5.Behavioural variables

benefit sought

product usage ratebrand loyalty

product end usereadiness-to-buy stage

decision making unitprofitability

8/7/2019 markeing

16/19

When numerous variables are combined to give an in-depth understanding of a segment, this is referred to as

depth segmentation.When enough information is combined to create a clear picture of a typical member of a segment, this is referred

to as a buyer profile. When the profile is limited to demographic variables it is called a demographic profile(typically shortened to "a demographic"). A statistical technique commonly used in determining a profile is cluster

analysis.=================================================================

THE BY-PRODUCT OF MARKET SEGMENTATION IS THE

IDENTIFICATION OF THE PARTICULAR SEGMENT, TARGET MARKETWHICH ONE WANTS TO EXPLOIT.------------------------------------------------------------------------------

NANO '' SMALL CAR''

IN UNIVERSAL TERM, the nano is a small car.

IN INDIAN TERM,-nano is specifically designed for the indian market.

-it is designed for the indian market-it is designed ''as a value for money''

-it is designed with india made parts.

THE MARKET SEGMENTATION VARIABLES CONSIDERED

FOR THE BUSINESSES.

-reduction in capital expenses.-reduction in operation expenses.

-reduction in maintenance expenses.

-improvement in the cash flow.-improvement in the working conditions for field employees.

-improvement in the productivity of field employees.

-improvement in the business market coverage-improvement in the business results.

----------------------------------------------------FOR THE INDIVIDUALS

1.Demographic variables*age

*gender Male and Female*sexual orientation

*family size*family life cycle

*Education Primary, High School, Secondary, College, Universities.

*income*occupation

*education--------------------------------------------------

2. socioeconomic status*religion

*REGIONAL FOCUS*language

-----------------------------------------

3. Geographic variables*region of the country,NORTH / SOUTH/ EAST/ WEST/CENTRAL etc.*metro/ rural : Metropolitan Cities, small cities, towns.

*Density of Area Urban, Semi-urban, Rural.*climate Hot, Cold, Humid, Rainy.

---------------------------------4.Psychographic variables

*personality*life style

*value*attitude

8/7/2019 markeing

17/19

--------------------------

5.Behavioural variables*benefit sought

*product usage rate*brand loyalty

*product end use*readiness-to-buy stage

*decision making unit

*profitability*income status=======================================

###############################################

THE BY-PRODUCT OF MARKET SEGMENTATION IS THEIDENTIFICATION OF THE PARTICULAR SEGMENT, WHICH ONE

WANTS TO EXPLOIT.

HENCE TO AIM AT THE NICHE MARKET,ONE MUST HAVE TO SEGMENT THE MARKET FIRST,

IT IS A CRITICAL STEP.------------------------------------------------------------------------------

A niche market also known as a target market is a focused, targetable portion (subset) of a market sector.By definition, then, a business that focuses on a niche market is addressing a need for a product or service that is

not being addressed by mainstream providers. A niche market may be thought of as a narrowly defined group ofpotential customers.

A distinct niche market usually evolves out of a market niche, where potential demand is not met by any supply.Such ventures are profitable because of disinterest on the part of large businesses and/or lack of awareness on the

part of other small companies. The key to capitalizing on a niche market is to find or develop a market niche thathas customers who are accessible, that is growing fast enough, and that is not owned by one established vendor

already.

Marketing in and for niche marketsNiche marketing is the process of finding and serving profitable market segments and designing custom-made

products or services for them. For big companies those market segments are often too small in order to serve themprofitably as they often lack economies of scale. Niche marketers are often reliant on the loyalty business model to

maintain a profitable volume of sales. this also means theres a gap in the market==================================================================

IT IS NOT DANGEROUS TO PICK / MARKET MANAGE A NICHE MARKET.BUT THE RISK IS HIGH.

THE RISK COULD INVOLVE-wrong segments

-bad market planning-poor cost.benefit analysis

-poor profiling of the market segment-ineffective selection of the market mix

-poor targeting efforts

etc.HENCE CAREFUL SEGMENTATION IS CRITICAL.

To Qualify As A NICHE Market Target, A Group Of Customers Should

Meet Important Conditions.

For any group regarded as a potential NICHE market target, the following questions should be asked:

Will the group satisfy our profit objectives?

Is it apt to grow?

How stable is the market?

Can we accurately measure the size and purchasing power of the target?

Will we be able to reach the target with our promotion?

8/7/2019 markeing

18/19

Do we have the resources to serve the proposed targeted market?

Are the homogeneous customers within the possible segment influential? Will their purchases cause other groups

to buy the products?

Can we identify the customers so that we can know where and how to appeal to them?

How strong is our competition in this target market? Are there any competitive opportunities for us?

Many market segments will not meet the above requirements. For instance, a certain group may not have

promising growth potential, yet it may offer stable and profitable business forces.

THIS WILL HELP TO REDUCE THE RISK FACTORS.=================================================

PRODUCT POSITIONING IN THE SELECTED MARKET SEGMENT.

FIRST STEP -- DO THE RESEARCHThe first step in the positioning process is to do the research. The good news is that product marketing managers

already have done most of the research as part of their job. To successfully position a product, you need athorough understanding of customer problems, channel issues, and how competitors are positioned. The answers

to these and other questions become part of a rationale document for your positioning strategy:What is your target market (size, type of company, etc.)?

Who is the decision maker you want to target your message to, and what keeps that decision maker awake at

night?

What pressing problem does your product solve for your prospective customer?

How is your prospect solving that problem today?

What specific benefit does your product deliver?

Why is your product better than the current solution and competitive alternatives?

Who are your key competitors; why and when do you win or lose to them?

How do your competitors position themselves in their marketing communications, including ads, direct mailcampaigns, brochures, and web sites?

What makes your product unique in a way that is relevant to your prospect?

Are there any problems, unique challenges, or special needs of your channel?

What do prospects and customers like and dislike about your product?

Do prospects and customers share your belief of why your product is better than the competitions?

Are there any characteristics of a sales situation that indicate whether or not your product or service will beselected?

Now incorporate the answers to these questions in a rationale document. By doing so, all product knowledge iscaptured in one place and can be used as a reference guide when marketing and sales need it. The rationaledocument should be three to five pages and should include this information:

Product CategoryDefine the products key features, advantages, and benefits. A matrix can help clarify theseitems.

Product Line FitDescribe how the product fits into the overall company product strategy.

Situation AnalysisDescribe the conditions that justify the release of this product, including why the company

believes it can be successful.

8/7/2019 markeing

19/19

Market AnalysisProfile target market(s) by size, revenue, market segment, operational type, or other relevant

categories.

Audience AnalysisProfile key prospects within the target market(s), including job titles and functions(demographics) and their concerns, attitudes, and behaviors (psychographics).

DistributionDescribe how the product will be distributed and the impact of distribution on product

communications.

Competitive PositioningDescribe the key competitors, their targets, and how they position their products.

Positioning Statement and RationaleEvaluate the product positioning statement against the following fourcriteria: Is it important, unique, believable, and usable?

Support PointsDescribe how the three support points make the positioning statement unique, believable, and

important. If multiple markets or audiences require unique support points, explain why.A rationale document transfers important product knowledge to those who need to know, but who dont have the

time or expertise to find the information themselves. Its especially useful when creating a product messagestrategy that includes a positioning statement (number 8 in the rationale document) and three or four support

points (number 9).

A MESSAGE STRATEGY IS A TIME SAVERYour positioning statement becomes the central idea and theme underlying all marketing activities. It is a short,

compelling, declarative sentence that states just one benefit and addresses the target market's number oneproblem. It must be unique, believable, and important, or the target market will ignore the message. Once you

have found the right message, your product marketing managers wont need to be involved in every planningsession for every marketing campaign.

Supporting benefit statements tell the story in more detail. They also provide a structure for productdemonstrations. While the positioning statement articulates a high-level benefit, the claims made in the supporting

statements should be readily demonstrable. That is, in just a few steps, you should be able to show how theproduct delivers concrete benefits.

Make sure your message strategy has enough detail to support the creation of a standard product demonstration.This helps your product marketing managers to create a demo quickly. And theres another benefitthe product

detail in the support points answers a lot questions before marketing and sales ask them.A message strategy also facilitates delivery of the same message across all marketing media, including web sites,

brochures, advertisements, and presentations to investors, industry analysts, and prospects. A standard outlineformat makes it easy for writers and other communicators to see the message strategy's benefit hierarchy, and to

take full advantage of it.A Rationale Document Captures All the Product Knowledge

In addition to documenting product knowledge, the positioning process improves marketing without intense, time-consuming input from product marketing. A message strategy is like the recipe for how to talk about your product.

Follow the recipe rather than ask product marketing, and your marketers can create a compelling, accurate storyabout your product.

This does not mean that your product marketing managers no longer need to be involved in the planning andcreation of marketing materials. They should provide input when appropriate. Its just that the process wont take

up nearly as much of their time. Thats because marketing gets most of its infusion of product knowledge by

referencing the rationale document and message strategy. And that means your product marketing managers havesuccessfully cloned themselves; theyll have more time for other competing priorities.

===================================================HERE ARE TWO EXAMPLES

----------------------------------------------------------------

1..NANO*SEGMENT----- middle class.

*TARGET----upper income brack [ 400,000 ----1mill rupees]

*POSITIONING -----affordable / CONVENIENT.----------------------------------------------------------------------2.AIRTEL-DTH

*SEGMENT-middle class*TARGET - FAMILIES with median income.

*POSITIONING ----entertainment for all situations.------------------------------------------------------------------