marketing ppt abhishek

8/3/2019 Marketing Ppt Abhishek

1/91

MARKETING MANAGEMENT

A THEORITICAL AND PRACTICAL

PERSPECTIVE


2/91

Definitions of MARKETING

The performance of business activities that direct theflow of goods and services from producer toconsumer.

Getting the right goods , to the right people in theright place , at the right time , at the right price , withthe right level of communication profitably.

Identifying the needs, wants , desires of consumersand fulfilling them in such a way that the customer isdelighted and the company objectives are metprofitably.


3/91

Difference Between Marketing & Sales

Marketing Sales1. Focus on customer Focus on seller (product)

2. Is about profit this year is about revenue this week

3. Delighting the customer converting product into cash4. Both new and repeat New customers is a priority,

customers important not bothered much about

with focus on repeat customers repeat customers.

5. Long term vision Short Term Outlook (week/

month)


4/91


5/91

Large companies up to 4 organisation levels

Corporate Level

Division Level

Business Level

Product Level

Corporate Strategic Planning

Planning Activities

Corporate Mission

Establishing Strategic Business Units

Assigning Resources

Planning New Business


6/91

The 10 Ps

PRODUCT

PLACE

PRICE

PROMOTION

PACE

PACKAGING

PROCESS

PLANNING PEOPLE

POSITIONING


7/91

BOSTON CONSULTING GROUPS GROWTH

SHARE MATRIX.

GE MODEL

ANSOFFS PRODUCT/MARKET EXPANSION

GRID


8/91

IGOR ANSOFFS PRODUCT/MARKET

EXPANSION GRID

Current Product New Product

Current

Market

New

Market

Market

Penetration

Market

Development

Product Development

Diversification


9/91


EXPANSION GRID

Market Penetration:

Encourage current customers to buy more.

Attract competitors customers to switch to its brand

Convince non users who resemble current users to start usingthe companys product.

Market Development

Geographical expansion

Channel expansion : If only present in consumer market, thenlook at institutional sales also.


10/91


EXPANSION GRID

Product development Strategy :

Introduce products with new features

Introduce different quality versionsAlternative product forms

Diversification Strategy


11/91

Business Mission SWOT Analysis Goal Formulation

Strategy

Formulation

Program

Formulation

Implementation

Feedback &

Control

B

usiness-Strategic Planning Process


12/91

GOAL FORMULATION

Objective in Quantitative Terms

e.g- To increase market share to 15% in 2 years.

Strategy Formulation

Michael Porter 3 generic strategies

- Goals indicate what a business unit wants to achieve- Strategy answers how to get there.

1. Overall cost Leadership :- Texas Instruments, Bajaj Auto

2. Differentiation : Achieving Superior Performance in an important customer benefitarea

e.g. : Quality Leader : Sundaram Fasteners

Style Leader : Porsche Sports Car

Technology Leader : Infosys3. Focus: One or more narrow market segments, product line , geographical region etc.

Understand the wants and pursue either cost or differentiation

e.g. Arrow Shirts

Beware of Marketing Myopia


13/91

MARKETING RESEARCH

Defn:- Systematic design , collection, analysis andreportingofdataandfindings relevanttoa specificmarketing situationfacingthe company.

e.g. :- 1) Product-conceptdevelopmentandtesting2)Testmarketing

3)Effectiveness ofadvertising

4) Brandimage study

5) Demandanalysis

6) Features/trend Analysis

7) Brandawareness analysis


14/91

MARKETING RESEARCH

Why Research

1) Toascertainthe customers realneeds

2) Tofindnewapplications orwhatis theexisting

product being usedfor (Punjab- w/m)

3) Tofind solutiontoexistingproblems

4) Tofindwhy competitionis doingwell


15/91

MARKETING RESEARCH

YO FROOTI

Definethe situation: Willgivingthe ripand zipeffecthelp broadenthemarket?

Researchobjectives:1) Tofindwhat kindofcustomers wouldpreferdrinking straight:-

teenagers, executives.

2) Tofindhowmanyarelikelyto switchtothis packagingatdifferentpricing.

3) What kindofflavors theywouldprefer

4) Whatotherliquids canthis container contain5) Whenwill consumers normallydrinkthis

6) Willthis packageenable switchingfrom Pepsis Mirandaorothernon-carbonateddrink.


16/91

Demand Forecasting

Techniques usedinforecastingmarketpotential

A) Extrapolation Techniques:

1) Persistence Model: 80 pieces in Feb, 100 pieces in

March,---pieces inapril.

2) TimeSeries decomposition:

O=T*C*S*I

Where O= Originaldata, C=Cyclical component

S=Seasonal , I= Irregular component, T=Trend.


17/91

Demand Forecasting

E.g.:

Washing Machines sold= Jan-Dec2003=12000

Estimationforyear2004

T=5% Growth:- 12000*(1.05)=12600, C=BusinessRecessionexpected (conservativeestimates, 10%drop)=90%*12600=11340

Ifsales are sameeverymonth, thenaveragepermonth=945.

Add seasonal (S) componentforfestivals like Diwali ,Durga Pooja, Pongal

S= Seasonal Index:- 1.2 , Oct, Dec= 945*1.2=1134

Total O= 1134*2+945*10=11718


18/91

Demand Forecasting

B) Polling Techniques: Delphi Technique

C) Historical Analogy:Sales experienceofanearlier

similarproductis sometimes usedas basis forforecastingsales ofanewproduct. e.g. B/W:- CTV

D) Econometric :

E) Experimental: Test Marketing:newproducts.


19/91

SEGMENTATION

Segmentation Base

A) Geographic Region

City Size

Climate

B) Psychographic Lifestyle

Personality

Variables

North South, East, West

Major Metros, Sub Metros, Town

Hot, cold, humid

Conservative, Status Seekers

Extrovert, Introvert, Aggressive


20/91

SEGMENTATION

C) Demographic

Age

Sex

Family Size

Education

Occupation

Income

Religion

0-11,12-19,20-34 etc.

Male, Female

1-2,3-4,5+school, Graduate, PG

Farmer, Professional,

Housewife, Retired


21/91

SEGMENTATION

D) Behavioral Benefit

Use Related

1) Usage Rate:

2) Awareness Status

3) Brand Loyalty

Use-Situational

Time/Objective

Quality, Service, Economy, Speed,Prestige.

Heavy, Medium , Light users

Unaware, aware, interested

enthusiastic.

Strong, Medium , None

Leisure, work, Morning, Night

Gift, Fun , Achievement


22/91

Porters 5 Forces- Determining Segment

Structural Attractiveness

Industry Competitors Buyers(Buyer Power)

Suppliers

(Supplier Power)

Substitutes

(Threat of substitutes)

Potential Entrants


23/91

Positioning

Positioning starts withtheproduct. But Positioningis notwhatyou doto aproduct. Positioningis whatyou dotothemindoftheprospect.

Easiestwaytogetintothemind- Be First

KODAK- Photography

Xerox -- Copier

Hertz --- Rent-a car


24/91

Positioning

6 STEPS IN POSITIONING PROGRAM

Whatpositiondoyou own

Whatpositiondoyou wanttoown? Whommustyou outgun

Doyou haveenoughmoney.

Canyou sustain .

Doyou matchyourposition.


25/91

Some Important Marketing Laws-Trout & Ries

1. Law of Leadership : The first desktop laser printer was

introduced by HP-> Even today its

the leader.

2. Law of Category : f you cant be the first in a category, set up a new category , you can be

first in.

IBM::- First in mainframe

DEC :- First in minicomputer

DELL :- PC thru Direct Marketing


26/91

3. Law of Mind : Better to be first in the

mind then to be first

in the market place.Worlds first PC:- MITS ALTAIR 8800

in the mind :- APPLE

Worlds first Mainframe : Remington Rand

in the mind : IBM


27/91

Some Important Marketing Laws-Trout

& Ries

4.) Law of Perception: Marketing is not a battle of products , its a battle

of perceptions.

e.g. :- 3 largest selling Japanese imported cars inUSA are Honda, Toyota, Nissan

But in Japan , Toyota outsells Honda

Because : In Japan Honda stands for motorcycle whereas in USA Hondais Motorcar. So in Japan , the perception is how can a motorcycle companymake great motorcars.

5) Law of Focus :The most powerful concept in marketing

Owning a word in the mind of the consumer.

CREST :-- CAVITIES

VOLVO :-- SAFETY

MERCEDES :-- ENGINEERING

PEPSI :---- YOUTH

BMW :----- DRIVING


28/91

6) Law of Exclusivity: Two companies cannot own thesame word in the consumers mind.

e.g. : DURACELL owns the long lasting word .

Evereadys Energizer just cannot own long lasting.Asian paints vs. NEROLAC EXCEL(YAMRAJ AD.)

7) Law of Ladder : The strategy to use depends on whichrung you occupy on the ladder.

Hertz:- Leader in car rental.

AVIS: Avis is only no.2 in RENT-A-CARS. So whygo with us? WE TRY HARDER.


29/91

8) LawofDivision :Overtimea categorywilldivideand becometwoormore categories.

Computers

Mainframes(IBM) MINIS(DEC)

Super (CRAY)Fault Tolerant

(Tandem)

Workstations(SUN) PC (Apple,

Compaq)


30/91

PRODUCT

Defn:A product is anything that can be offered to a market forattention, acquisition, use or consumption that might satisfy awant or need.

e.g. :- Physical Goods :-- Cars, W/M

Services :- Training

Persons :- Michael Jackson

Ideas : - Family Planning

Five Levels of Product

Level 1 : Core Benefit : Fundamental benefit that thecustomer is buying . E.g. :- Hotel :-Rest, CTV :-Entertainment


31/91

Product

Level 2:- Generic Benefit : Basic version of the product.

e.g. : Hotel : consists of a building with rooms.

W/M : Metal/plastic body with console

panel

Level 3 : Expected Product : A set of attributes and conditionsthat buyers normally expect and agree when they purchase theproduct.

e.g. : Hotel : Clean Bed, soap, towels, telephone

CTV : Tuning on remote, cable ready.


32/91

Product

Level 4 : Augmented Product : includes additionalservices and benefits that distinguishes the companys

offer from competitors offers.e.g. : Hotel : Complimentary breakfast, Flat

CTV,

24 Hrs checkout, etc.

Level 5: Potential Product: All augmentations andtransformations that the product might ultimatelyundergo in the future.

e.g. : Computer compatible TV (which can operateat room temperatures)


33/91

Eight Stages of New Product Development

Idea Generation

IdeaScreening

Concept Development & Testing MarketingStrategy

Business Analysis

Product Development

Market Testing

Commercialization


34/91

EightStages

1) Idea Generation :Source of New Product Ideas:-

Customers , Employees, Competitors Products and services ,

sales team

Idea Generating Techniques :

Brain Storming , Need/Problem Identification , Problem/Need

Identification

2) Idea Screening:Drop Error

Go Error


35/91

3) Concept Development & Testing:A product concept is an elaborated version of the idea

expressed in meaningful consumer terms.

4) Marketing Strategy Development :

a) Describes the size , structure of the target market,

Positioning, sales, Market share in the first few years.

b) Product, Price, Place, Distribution strategy.

c) Long run sales and profit goals.

5) Business Analysis:

Actual costs to R&D, MFG. ,Marketing cost and Profit Projection


36/91

6) Product Development:

1) Develop Prototype

2) Functional & Consumer Tests

7) Market Testing :

Testing in select outlets with actual brand name and

packaging

8) Commercialization :When to enter the market

How to enter the market


37/91

Product width : Different Product categories the company is in

Product Length :In each product category how many products

are available

Product depth : Variants that are offered for each product.

Product Strategies

1) Downward Stretch

2) Upward Stretch

3) Two-way Stretch


38/91

BRANDING

Products dont sell , Brands sell

The ultimate aim of product manager must be toconvert the product into a successful brand.

Japanese Name : TOKYO TSHUSIN KOGYO

KABUSHIKI KAISHA

English name : Tokyo Telecommunications

Engineering company


39/91

BRANDING

CITIBANK: The citinever sleeps.

HSBC: Theworlds local bank. Canara Bank: Growingto serve. Servingtogrow.

LOREAL: Becauseyoureworthit.

Maybelline: May be shes bornwithit. May beits Maybelline.

GO GOA :365days onaholiday. Kerala: Gods own country.

Retreat: cityends. Life begins.

KL : VISION CITY

Malaysia: Truly Asia. Singapore:Singapore Roars

Hong Kong: Liveit up.


40/91

BRANDING

BPL : Believeinthe best.

Videocon: Bringhometheleader

Technologyforhealthand Pleasure.

Sansui :Betterthenthe bestBornin Japan . Entertainingtheworld.

LG :Digitallyyours.

Nokia :Connectingpeople

Motorola : Intelligenceeverywhere. Ceat Tyres : Born Tough.

Femina : Forthewomanofsubstance.

Forgeneration W.


41/91

BRANDING

Orange: Whereveryou go, ournetworkfollows.

Reliance India Mobile: Karlo Duniya Mutthi Mein.

Aaj Tak:Sabse Tej.

Chevroletoptra: Thenewnameforluxury. Santro Xing: The sunshine car.

Tata Indigo:SpoilYourself.

Mitsubishi Lancer: Always in control.

Raymond: Forthe completeman. TataSalt: Desh kanamak.

Louis Philippe: The upper crest.


42/91

BRANDING

Defn:- A name ,symbol, design which is intendedto identify the goods ,services of one company andto differentiate the goods from those ofcompetitors.

BRAND NAME DECISION

Individual Brand Name: P & G :- Ariel, Pantene

A Blanket Family Name: Philips

Company Name combinedwithindividualproductnames:-Britannia50-50

Videocon Bazoomba


43/91

BRANDING

Brand Strategy

Line Extension

Brand Extension

Multi Brand

New Brands


44/91

PRICING

Differential Pricing :Same brandis soldatdifferent

prices/differenttimes to

consumers.

Competitive Pricing : Prices are settoexploit

competitive position.

Product Line Pricing : Related brands are soldatpricesthat exploitmutualdependencies.


45/91

Pricing

DIFFERENTIAL PRICING :

1) Periodic Discounting:- SkimmingStrategy

Catertoearlyadopters ----afterthattheprice reducedtocatertothenextgroupofbuyers.

e.g. : BPL MOBILE/ORANGE.

2) Second Market Discounting:

Dumping--

Firmsselling

Priceinforeignmarketis belowits average costinhome

country. (e.g. dumping by china)


46/91

Pricing

B) COMPETITIVE PRICING :

1) Penetration Pricing: Price substantially belowmain competitors. (AKAI, AMUL)

2) Geographic Pricing: In same countryprices

differenttotakeadvantageofsales tax/transportation savings.


47/91

Pricing Product Line Pricing:

1) Complementary Pricing:

Captive Pricing: Razor & Blades, Cameras & Films , Auto&

Spare Parts, VCD Player & Software.

Two Part Pricing:Service Industry:-

Fixed+variable usagefee (MTNL)

Entryfee+every ride /game/placeseparatepricing:-- SENTOSA ISLAND (SINGAPORE)


48/91

2) PREMIUM PRICING : Basic & DeluxeHotelrooms, Front &

Tear Auditorium seats, Basic & Deluxe cars:-

Firms makeprofit on Premiumversions


49/91

Pricing

Product Line Pricing

3) Product Bundling :Seasonpass cheaperthen dailytickets

Car+accessories , thepriceislesserthen if eachitemisbought separately.

4) Image Pricing : Firms bringoutanidenticalversion

ofits currentproductwithadifferent name/packagingandahigherprice. The intentionis to signalquality.


50/91

Promotion

Advertising

Sales Promotion

PersonalSelling PR


51/91

Salespromotion

Consumer Promotion

(Manufacturerpointofview)

Toincrease sales ofselfbrand

Todivertattentionfrom competition brands. Enables manufacturers toadjusttoperiods oflow

demand.

Induce customers totrynewproducts/brands.

Customerpointofview.

Enables customers tohavea better understandingofrealprices.

Consumers feelgoodthattheygetvalueformoneydeals.


52/91

Sales Promotion

Consumer Promotion Tools:

Samples : Free samples with TOI , Mid-day, Filmfare.

Coupons: FMCG companies: 15%discount couponor

some rupees offforthenextpurchase. Price Packs: Packof2ormoreat reducedprice.

Banded Pack: Two relatedproducts bandedtogether(toothpastewithtoothbrush, VCD playerwith software.)

Contests : Answerafewquestions, writea slogan.

Free Trials: Freeautodrives.

Warranties:3yr onCTV, 7 yrs on compressor.


53/91

Sales Promotion

Scratch n winoffer:

Money backoffer

Loyaltypromotion: Frequent Flyerprograms

Cross promotion: Two relatedproduct categories

promotingtogether , mostlythe secondproductis free.

Tie-inpromotion: usedin conjunctionwith consumer

durables wherein totalis lowerthenifbought separately.


54/91

Dealerpromotion Tools

AnnualSchemes

Quarterly schemes:

Scratch n win scheme:


55/91

Marketing Warfare

Defensive Warfare

Is what market leaders wage

Offensive Warfare

Is strategy for No.2 or No.3 in a

category

Flanking WarfareSmaller or new players that

are trying to get a foothold

in a category by avoiding

the main battle.

Guerilla Warfare

Is often the land of smaller

companies


56/91

MARKETING WARFARE

SIMPLY THINK OF COMPETITORS AS THE

ENEMY . ATTACK OR FLANK OR KEEP

INNOVATING DEPENDING ON YOUR

POSITION IN THE STRATEGICSQUARE.

NEVERHESITATE TO DESTROY

COMPETITION OR ELSEU WILL BE A PART OF HISTORY.


57/91

Marketing Warfare

Principles of Defensive Marketing Warfare

Only the market leader should consider playing

defensive. The best defensive strategy is the courage to attack

yourself

Strong competitive moves should always be blocked.

e.g : Gillette : The best a man can get.

Owned wet shaving market with Blue and Super BlueBlade.

Launched Trac II (nonadjustable ) and ATRA

(adjustable double bladed razor)


58/91

Marketing Warfare

Launched Good News (inexpensivedisposable razorto

counter BIC (French companywhichlauncheddisposable

razor)

Mach3:- 3 bladed razors

Market shareofover 60%in USA/Europe.

Otherexamples: INTEL (286,386,486,PENTIUM etc.)

J&J ::- Tylenol:- reducedpricefrom $2.85for 100 to

$1.85to beat Bristol Myers Datril.


59/91

Marketing Warfare

Principles ofOffensive Marketing Warfare:

Themain considerationis the strengthoftheleaders

position. Findaweakness intheleaders strengthandattackatthat

point.

Launchtheattackonas narrowafrontas possible.

e.g. : AVIS:-- Rentfrom AVIS . Thelineatour counteris

shorter :- AVISattackedHertz:-- weakness inherentinHertzspositionas thelargest Rent-A-Car company.

XEROX: Out-innovatedtheleader3M (bydevelopinga better copyingprocess-dryinsteadofwet copying)


60/91

Marketing Warfare

Fed Express usedprinciple3 by saying Whenit

absolutely , positivelyhas to bethereovernight (small

packages less then 70 pounds)= challengedtheleader

EMERY.

WallStreet Journalwas theleader (2 Mndaily) for

financialand business information. Thenamepositions it

as afinancialpaper , sothe business side can beattacked

== Business Times , Thedaily business newspaper.


61/91

Marketing Warfare

Principles ofFlanking. A good Flankingmovemust bemadeintoan

uncontestedarea.

Tactical surpriseoughtto beanimportantelementofplan.

Thepursuitis as criticalas theattackitself.

1) Michael Dellflankedthe computerindustryand DirectMarketed:- $ 500 Mn companyin5years.

2) Miller Liteflankedthe beerindustrywith Lite beer.

3) DECflanked IBM (Minicomputers)


62/91

Marketing Warfare

Mercedes-Benz flanked GM (Cadillac cars ) atthehighend.

Volkswagen's Beetleflanked GMs big cars.

Avonflanked cosmetic companies who usedtraditionaldistributionmethods by resortingtodirectdoor-to-door selling.

Tolaunchatrueflankingattackyou must bethefirsttooccupythesegment.

Otherwiseits justanoffensiveattackagainstadefendedposition.

Flanking skill requires exceptionalforesight becausethereis noestablishedmarketforthenewproductor service.

Indianexamples: Nirma, Close-up.


63/91

Marketing Warfare

Principles ofGuerilla Marketing Warfare. Finda segmentofthemarket smallenoughtodefend.

Nomatterhow successfulyou become , neveractlikea

leader. Bepreparedto bugoutatamoments notice.

e.g.: Rolls-Royce:Highpriced Guerilla:nobody competesbecause

1) existingmarketis small

2) The companyinitiallyhas anenormous advantage.

Indianexamples: 1) Arun Ice-cream: T.N

2) Naturals Ice-cream: Mumbai

3) CrownCTV : Gujarat. (Geographic

Guerillas)


64/91

CONSUMER BEHAVIOUR

Critical Factors For Retail ToSucceed

BUTT BRUSH EFFECT

Shoppers needalanding strip:-

transition zone Keep baskets scattered: Shoppers haveonly2hands.

Seating Arrangements: For companions to siteandwatchsome programs whileothers shop.

DesignShopping carts with coffee /coke cupholders.

Designmainaisleand sub aisles keepinginmindthemotherwith baby strolly.

Parking space.


65/91

CONSUMER BEHAVIOUR

Consumers slowdownwhenthey see reflective surfaces

keepimportantitems nearmirrors.

MostConsumers walktowards their rightwhentheyenter

the showroom/supermarket. CAPTURE RATE :Howmuchofwhatis ondisplayis

seen by shoppers.

Thereis areliable zone inwhich shoppers willprobably

seemerchandise. :-

reliable zone is from slightlyaboveeyeleveldowntoabout kneelevel. :-- so keeponly

largeitems aboveor belowthereliable zone.


66/91

CONSUMER BEHAVIOUR

BOOMERANG RATE: This is themeasureofhowmanytimes shoppers failtowalk completelythroughanaislefromoneendtotheother.

How to get shoppers to the back/end of aisle is achallenge

Keep kiddie stuff at the end.

For drugstore:- keep pharmacy items at the end.

Keep cosmetics at the end with mirrors nearby.

Keep new releases, new products at the end. Keep demos at the end.

Keep changing the look of the store.


67/91

CONSUMER BEHAVIOUR

WHAT WOMEN WANT

Womenoncemadeentirewardrobes forthefamily. Today

thefamily is luckyifshehas timeto stitchevenaloose button. Womenwhoarehousewives generally shopfortimepass :-shoppingtime: 1.00 p.mto 8.00 p.m.

Working Women shopwhenevertheyhave sparetime:preferconvenience stores :- openfrom 7.00 p.m 10.30 p.m

Workingwomenhaveenabledgrowthof manyproductcategories like cosmetics, ready-to-eatfood, clothes, vehiclesetc.

Greatwindow shoppers/searchers with ahighdegreeofpatience.


68/91

CONSUMER BEHAVIOUR

Whentwowomen shoptogether:- theyoftenend up

spendingmoretimeandmoneytheniftheywerealone.

Greatinfluencers for cars and consumerdurables.

Direct buyers for cosmetics, dresses andgroceries.


69/91

CONSUMER BEHAVIOUR

SHOP LIKE A MAN

Mendontlike shopping.

Patient companionforthewomanwhile she shops.

Menalways movefasterthenwomenthru the storesaisle.

Impatient , willnot search, whateveris available:- willdecidequickly.

As per research 65%ofmale shoppers whotried

somethingonboughtit as against25%women. 72%ofmenlookatpricetags as comparedto 86%

women.

Willliketoleavethe showroomas earlyas possible.

Manalmostalways pays.


70/91

CONSUMER BEHAVIOUR

Mangives infasterto childrens demandthenwoman.

Conventionalwisdomis selltowomanand closeto

man.:- Whybecausewhilethemanmaynotlove

shopping , hegets adefinitethrillfromtheexperienceofpaying.


71/91

CONSUMER BEHAVIOUR

WELCOME TO KIDDIELAND

Theywanttofeelandtouchwhatever comes theirwayandiftheylike somethingtheywillpestertheirmom/dadtilloneofthemagrees to buy:-- usuallythedad.

Keepthings below reliable zoneofelders :-- reliable zonefor kids.

Mostparents wanttheir kids tohavethe best:-- hugedemandfortoys, books, clothes, kiddyfood, diapers,

baycots ,strollyetc. Keep kids engrossedinthe store:- toy room , Disney

videos.

Colouring books starringapuppy , kitten & handfulofcrayon:- kids lovethemandparents can shopinpeace.


72/91

CONSUMER BEHAVIOUR

WHAT ABOUT THE OLDIES

Nearly20%oftheworldpopulation >50 years.

Haveeyesightproblem:-butallliteratureforpharma,

manuals for camera, telephonedirectoryare so smallinwritingthatthesepeople cannotdecipher.

Preferred colours :- red, whiteand black.

Theireyes receiveless lightthenyoungpeople, so

stores/restaurants needto be brightlylit. ATMs , Mobilephones, remotes needtohavelarger

buttons.


73/91

CONSUMER BEHAVIOUR

Hugemarketfor shoes , baggyloosepants, opennecked

shirts :- oldies preferthem

Doalotofsight-seeing( vacation)

Skin care, hair care:-- young at heart


74/91

CONSUMER BEHAVIOUR

WhatShoppers Love

Touch: Allgoods

Mirrors Discovery

Recognition:You shopwherethey knowyourname.

Good Bargains

WhatShoppers Hate

Toomanymirrors

Long Lines forpaymentorfortrial.

Rude, slow service

Notproperlyilluminated

trial rooms. Goods outofstock.


75/91

CONSUMER BEHAVIOUR

CYBERSHOPPING

What cyber shopping canprovidethatphysical retailingcannot

Limitless Selection:e.g. : Inthe book category , asuperstore canhouse 1,00,000 titles, whiletheonline

bookstores -2-3milliontitles in stock.

PriceComparison: Usinga searchengineyou caninstantlyfindhundreds ofretailers sellingtheexact

productyou want. This allows for comparison shoppingatafastpace.

Convenience:You can shopfromhome, office. Shopatanytimeoftheday/night. You donthavetoworryaboutparking.


76/91

CONSUMER BEHAVIOUR

Speed:You canenterawebsitewheneveryou wantandmovethru itatyourpace , then zipthru paymentprocedurelikelightning.

Information:on-linelimitless amountofinfo.

Whereinternetis used

1) ONLINE Tr adingofstocks.

2) Buyingairtickets.

3) Books,CDs are boughtonline.

4) Gifts, flowers, wine ,greeting cards.

5) Computerhardwareand software.


77/91

CONSUMER BEHAVIOUR

Reference: Many buyers gotothe realworld stores, findwhattheywant (interms offeatures) andthen shoptheweb for betterprices.

Motivated shoppers :- visit stores :- chooseandthenlogonnetand buyfroma retailerwho keepspricelow bynothavingtopay rent, overheads, labour costetc.

Lets Get Human :

Therearethree bigthings that stores alone canoffer

shoppers Touch, Trialoranyother sensory stimuli.

Immediategratification.

Social Interaction.


78/91

Industrial Marketing

Characteristic Features of Industrial Products

Derived Demand

Limited no. of buyers.

Scale of purchase is greater. Complex nature of products.

Buying is a group process.

Suppliers Reputation

Rational Buying Motive Emphasis is on personal selling

Short Distribution channel.


79/91

DistributionStrategies

EXCLUSIVE DISTRIBUTION : Distributingthrough

companyoutlets orfranchiseee.g. : LG PLAZA,

HONDA Showrooms:- only companyproducts are

available.

INTENSIVE DISTRIBUTION : Placingtheproducts in

as manyoutlets as possible.

Products :Soaps, cigarettes, softdrinks , BPL MOTSetc.( eachoutlethas various brands )


80/91

DistributionStrategies

SELECTIVE DISTRIBUTION :

Here companies selecta combinationofExclusive

distribution (only companys products) & Intensive

Distribution (someimportantoutlets whicharemultibrandoutlets)

e.g. SAMSUNG , VIDEOCON


81/91

Criteriafor choosingChannel Partners

FinancialStrengthofProspectiveChannel Partner:revenue, P& L statement , balance sheetetc.

Sales Strength:no. ofsalesmenandtheirtechnical

competency Product Lines: 1) Competitiveproducts, 2)

Compatibleproducts 3) Complementaryproducts.

Reputation: 1) leadership2) Well Established3)Levelofexpertise.

Market coverage: Geographic coverage , outlets permarketarea.

Sales Performance.


82/91

Criteriafor choosing channelpartners

Advertising & Sales promotionprograms.

Ordering & Payment Procedures.

Willingness to sharedata:a) customers b) Inventory c)

sales figures. Installation & Repair services .


83/91

Factors Retailers usein choosing companies

Accepts unsoldordamagedmerchandise returns

Has quickandeasyorderingprocedures

Providespromptdelivery

Maintains adequate supply

Good reputation /Brand Name

Has alargeproduct range.

Provides deliveries inlots as desired by retailer.

Promotes brandon a regular basis.

Provides adequatemargins.

Offers good schemes, quantitydiscounts

Extends credit > 30 days.

Has good competent sales team/product/technicalteam.

Ensuresprompt service

Provides good storedisplays (POP)


84/91

Distribution

Retailing :Consists oftheactivities involvedin sellinggoods and services to ultimate consumers. A retail saleis

oneinwhichthe buyeris an ultimate consumerandthe

buyingmotivefora retail saleis always personalorfamily

satisfactionderivedfromthefinal consumptionofitembeingpurchased.

Wholesalers: Wholesalingis concernedwiththeactivities

ofthosepersons orestablishments which sellto retailers

andothermerchants , and/ortoindustrial , institutionaland

commercial users , butwhodont sellin significantamount

to ultimate consumers.


85/91

Functions Performed by

wholesalers/Retailers formanufacturers.

Market coverage:Convenienceto customers

Sales contact: company sales forcewould be callingona

relatively smallnumberofwholesalers/retailers rather

thenthemuchlargernumberofcustomers. InventoryHolding:Stocktheproducts ofthe companies

thatthey represent.They reducethemanufacturers

financial burdenand riskassociatedwithholdinglarge

inventories.

Market Information:

CustomerSupport: service, spareparts.


86/91

Functions Performed by

wholesalers/Retailers forCustomers

Product Availability: readyavailabilityofrangeofproducts.

Assortment,convenience: Brings togetherfromavarietyofmanufacturers anassortmentofproducts that can

greatly simplifythe customers selectionandorderingtasks.

Bulk-Breaking: Distributor buys in bulkandgives tocustomers in unitofone:SKU.

Creditand Financial Assistance Adviceand TechnicalSupport:(installation-->A/C,PC)

CustomerService: Delivery , after sales help .


87/91

Services Marketing

Defn: A serviceis anyactorperformancethatoneparty

canoffertoanotherthatis essentiallyintangibleand

doesn't resultintheownershipofanything . Its

productionmayormaynot betiedtoaphysicalproduct.

E.g: Airlines, hotels,banks,insurance,brokers , realestate

companies,police,postoffice, colleges,hospitals.


88/91

Services Marketing

Automated

ATM'S,

Vending Machines

Operated by semi

skilled people

e.g Dry cleaning,

cinema

Operated by

skilled people

e.g Airlines

Equipment Based

Unskilled

people

watchman

Skilled

people

Mechanics

Professionals

Doctors

C.A

People based

Types of services


89/91

Services Marketing

Characteristics ofservice

Intangibility Inseparability

Perishability

Variability


90/91

Services Marketing

Intangibility :Cannot be seen , tasted,felt, heardorsmelled beforepurchase.

Tangibilize the intangible

e.gHDFC bank

1) People:quick service,courteous,helpful

2) Machinery: stateoftheart ATMs, WAN networketcwill connotemodernandeffective bank.

3) Place: Exterior, Interiorambience: should connote

class.


91/91

Services Marketing

Inseparability:Services aretypicallyproducedand

consumed simultaneously.

Perishability:Services cannot be stored.

Unusedelectric power, idle seats in bus,train represent business whichis lostforever.

Variability:Services arehighlyvariable , sincethey

dependonwhoprovides themandwhenandwheretheyareprovided.

marketing ppt abhishek

Documents