notes of adv. marketing managment.pdf

8/14/2019 Notes of Adv. Marketing Managment.pdf

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Meaning:

Marketing management focuseswants, and developing products

Definition: Marketing manage

growing and keeping customersvalue.

What is marketed?

It specifies tangibility spectrum

.Goods Services associate

i. Goods: Goods constitutcars, trucks, television seService can also be assoc

ii. Services: Services inclubakers, lawyers, doctor

variable mix of goods a

consumes both a product

iii. Events: Marketers properformances, and comp

and the World Cup are p

iv. Experiences: An amusecustomers by taking ri

provided by these experiv. Persons: Celebrity mark

people all get help fro

Sachin Tendulkar, Shah

vi. Places: Cities, states, resoftware industry Banga

industry, Karnataka is m

marketing India as a tocampaign.

vii. Organizations: Organizimage in the minds of

organizations, and nonpcompete for audiences an

Eg:Philips Sense and S

viii. Property: Properties arestate) or financial prop

exchanges require marke

institutional and individu

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Marketing management

on satisfying customer requirements by identnd services to meet them.ent is a science and art of choosing target m

by creating, delivering and communicating c

:-

with good. Goods associated with services

the bulk production and marketing efforts. C

s, machine tools, watches, cosmetics etc.iated with goods.

e the work of airlines, hotels, maintenance amanagement consultants. Many market offer

d services. At fast food restaurant, for exam

and a service.ote time based events, such as major trad

any anniversaries. Global sporting events such

omoted.

ment park or a water park represents experies in the amusement park or the water par

nces.ting is a major business. Artists, musicians, Ccelebrity marketers. Celebrities such as A

ukh Khan, Aishwarya Rai are big brand thems

ions, and whole nations compete actively to alore is positioned as the silicon valley of

rketed as One state many words. The Gover

urist destination through the Incredible Indi

ations actively work to build a strong, favor

their target publics. Universities, museums,

rofits all use marketing to boost their publd funds.

implicity campaign.

intangible rights of ownership of either reerty (stocks and bonds). Properties are boug

ting. Investment Companies and banks market

al investors.

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ifying needs and

rket and getting,

stomer superior

Services

ompanies market

d repair people,ings consist of a

le, the customer

shows, artistic

as the Olympics

ntial marketing:enjoy the thrill

Os, high profileitabh Bachchan,

lves.

ttract tourists. Inndia. In tourism

nment of India is

advertisement

ble, and unique

performing arts

c image and to

al property (realt and sold, and

securities to both


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ix. Information: Informatiomarket, and distribute at

Eg: Travel guides, Perio

x.

Idea: Every market indelivering some idea or b

Eg:ideas creting awaren

Marketers and prospects:

A marketer is someone seekingvalues.

A prospect is someone whom th

an exchange of value.When one partly is more active

partly a marketer and second par

Market: The concept of exchan

set of all actual and potential bu

In other words, market is a situat

Eg: Window shopping, e-bay etc

Following are the different t

1.Consumer Markets: Wgifting to another individ

Eg: Cosmetics, shoes etc.

2. Business Markets: Whefor a sale. It is called as

3.Global Market: Whencontinent by altering the

as Global market. The dnegotiating, owing; diff

currencies that might flu

4. Non-profit and Goverorganizations such as

organization need to pri

power. Government purthe absence of extenuatin

5. B-B Market Business6. B-C Market Business7. C-C Market Consume

Marketing

Meaning:Meeting needs profitably of con

exchange and relationship leadpotential buyers of product or se

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n is essentially what books, schools, and uni

price to parents, students and communities.icals, newspapers etc.

ludes a basic idea. Products and services aenefit.

ss about AIDS, discouraging smoking and so o

one or more prospects who might engage in

marketer identifies as potentially willing and

ly seeking and exchange than the other party,

tly a prospect.

ge and relationship lead to the concept of mark

ers of product or services.

ion where sellers and actual and perspective bu

.

pes of market:

en an individual buys product for personal coual for his personal consumption is called as C

n buyer buys the product for a resell or to manuusiness market. Eg: Furniture, PC etc.

ompanies market the product across the cou

product as per the requirement of that specific

cision is made in the face of different requireerent culture, language and legal and politi

tuate in value.

mental Markets: Companies sell their goohurches, universities, charitable institutions

e carefully, because these buyers will have li

hasing calls for bids and buyers often favorsg factors.

o Business Market

o Consumer Marketr to Consumer Market

sumers and organization is called as marketin

to the concept of market. A market is a setvices.

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ersities produce,

re platforms for

n.

an exchange of

able to engage in

we call the first

et. A market is a

ers exist.

nsumption or foronsumer market.

facture a product

tries, across the

market is known

ents for buying,al systems and

ds to non-profitand government

ited purchasing

or lowest bid in

. The concept of

of all actual and


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Define Marketing.

According to AMA, Mark

communicating and delivering

the way that benefits organizaMarketing depends on various c

concepts. Following are the imp

Core Concepts of Marketing

1. Need: -A human need isrequire food, clothing, sh

Types of Needs:a. Stated needs- thb. Real needs- wanc. Unstated needs-d. Delight needs -e. Secret needs- th

2. Wants:-Wants are the forms tak

personality people have

choose product that proviExample: - a human bein

3. Demand:-Given with they wantsthe most value of a satisf

Types of Demand:a. Negative Demand:

it. e.g: Drug (medicin

b. Nonexistent Demane.g: Insurance policy.

c. Latent Demand:Coexisting product. e.g:

d. Declining Demand:e. Irregular Demand:

or even hourly basis.

f. Full Demand: Comarketplace.

g. Overfull Demand:satisfied. e.g: Demar

h. Unwholesome Demundesirable social co

4. Value: Value is a cenand intangible benefi

benefit. It is the relatiquality and services a

Benefit can be fu Cost can be time

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ting is a function and set of processe

a value to customer and managing custome

ion as well as consumer.oncepts so that Phillip kotler states that marke

rtant core concepts of marketing are:

a state of felt deprivation of some basic satisfa

elter, safety, belonging & esteems.

customer wants an inexpensive car.

ts a car with operating cost, not its initial price ithe customer expects good service from the de

ould like the dealer to include an onboard navi

customer wants friends to see him as savvy co

n by human needs has they are shape by cult

lmost unlimited wants but unlimited resource

de the most value & satisfaction for their mone g needs food but wants the burger, French rice,

resources. People demand product with benection.

onsumers dislike the product and may even pae).

:Consumers may be unaware or unintereste

nsumers may share a strong need that cannotCigarettes.

Consumer begin to buy the product less freque

onsumer purchases vary on a seasonal, monthe.g: Bouquet.

sumers are adequately buying all produc

More consumers would like to buy the pro

keting.

and: Consumers may be attracted to prosequences. e.g: Alcohol.

ral marketing concept. It reflects the sum of p

s and costs to customers. It is the relation b

n between what we give and what we get. Vald decreases with price.

ctional benefit and emotional benefit.ost, energy cost and psychological cost.

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s for creating,

relationship in

ing rests on core

ction. e.g. people

s low.ler.

ation system.

nsumer.

ure & individual

. People want to

.& soft drink.

fits that adapt to

a price to avoid

in the product.

e satisfied by an

tly or not at all.

y, weekly, daily,

s put into the

uct that can be

ucts that have

rceived tangible

etween cost and

e increases with


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Value: Benefit

Cost5. Satisfaction: Satisfactperformance in relatioperson is dissatisfied a

satisfied. If it exceeds

6. Segmenting:Dividinpreferences into one g

Different levels of seg

1. Segment Mark2. Niche Marketi3. Local Marketi4. Individual MarBases for Segmen

1. Geographic Se2. Demographics3. Psychographic4. Behavioral Se

7. Targeting:It can be dmarket segment and sEg: Mercedes for high

8. Positioning: It dealsEg: Maggi- in 2minut Volvo for safety.

Marketing Orientations

There are five main alternatives

a. Selling orientation.b.Production orientation.c. Product orientation.d.Marketing orientation.e. Societal Marketing

These are described briefly belo

Selling orientationThe selling concept holds that c

organizations products. The or

promotion effort. e.g. Insurance

Production orientationA production concept is one o

prefer products that are widely

said to be mainly concerneddistribution). By concentrating

maximize profitability by exploexceeds supply and when the pr

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ion reflects a persons judgments of a products

nship to expectations. If performance falls shortnd disappointed. If it matches expectations, the

them, the customer is delighted.

g the market by grouping the customers with sioup is called segmentation.

mentationare:

tingg

g

keting

tation:

gmentation

Segmentation

Segmentationmentation

efined as a concentrating resources and efforts

gments.end people.

ith creating a distinct image in the minds of the

s.

o adopting a marketing orientation. These are:

:

nsumers and businesses, if left alone, wont b

anization must therefore, undertake an aggre

ompany they make policy and make it availab

the oldest concepts in business. It helds tha

available and inexpensive. A production -orie

ith making as many units as possible (masson producing maximum volumes, such a

ting economies of scale. It occurs in a situatiduct cost is too high. .

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perceived

of expectations,customer is

ilar tastes and

n particular

customer.

y enough of the

sive selling and

e to customers.

consumers will

tated business is

production andusiness aims to

on when product


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Product orientationThis is different from a producfavor products that offer the

organizations focus on makingthat is obsessed with its own

products may start out as fully ui-pod. They focuss on product d

Marketing orientation

The marketing orientation emergis not to find right customers fo

marketing orientation holds tha

than competitors in creating, detarget markets.

Holistic marketing

Holistic marketing recognizes tthe development, design and im

that recognizes their breadth and

a. Relationship marketingIt aims to build mutuallyto earn and retain their b

Four key constituents of

Customers Employees Marketing partners(c Members of the finan

b.

Integrated marketingMarketers task is to devi

programs to create, com

c. Internal MarketingInternal marketing is the

want to serve customers

Performance MarketingHolistic marketing incorporates

business from marketing activittheir legal, ethical, social, and en

Financial Accoun

Social Responsibi Social Initiatives Corporate social Cause marketing Corporate philant Corporate comm Socially responsi

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ion orientation. The product concept proposemost quality, performance, or innovative f

superior products and improving them over tiroducts, perhaps even arrogant about how goo

-to-date and technical leaders. e.g.Apple prodvelopment and come with great quality produc

ed with the concept of sense-and-respond phiyour product but to find right product for you

key to achieving organizational goals is bein

livering and communicating superior custome

at everything matters in marketing. The colementation of marketing programmes, proces

interdependencies

satisfying long term relationship with key consiness.

elationship marketing

annels,suppliers,distributers,dealers,agencies)

cial community(shareholders,investors,analyst

se marketing activities and assemble fully inte

unicate, and deliver value of consumers.

task of hiring, training, and motivating able

ell.

performance marketing and understanding t

ies and programs, as well as addressing broavironmental effects.

tability

lity Marketing

arketing

hropynity involvement

le business practices

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that consumersatures. In these

e. The businessd they are. Their

cts like i-phone,ts.

losophy. The jobr customers. The

g more effective

value to chosen

cept is based onses and activities

stituents in order

grated marketing

employees who

e returns to the

er concerns and


6/34

Aging Demand decreases, co

among remaining competitors guntil the markets demise.

Competitive PositionThe five categories for competiti

Dominant This is rare and typresult of bringing a brand-new p

in the market (think Microsoft).

Strong Market share is strongFavorable Your business line e

However, there are many rivals

advantage.

Tenable Your position in the

strong geographic location, or so

overtaking your market share byadvantages.

Weak Theres continual loss o

to maintain profitability.

Step1 : Understand the marke

As a first step, marketers need

within which they operate. Inneeds, wants demands. Howeve

term should be clearly underst

clothing, and survival. Wants arto human wants that are backed

Step2 : Design a customer-dri

To design a winning marketinquestions? What customers will

these customers best(whats our

The company must first decid

segments of customers (market(target marketing)

The company must also decide h

position itself in the market plac

Step 3: Preparing an integrateThe marketer develops an integ

value to target customers. Thethe marketing strategy into acti

tools the firm uses to implement

mix tools into a comprehensivethe intended value to chosen cus

Step 4: Building customer rela

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panies start abandoning the market, the fight

ts too expensive, and companies begin leaving

ve position are as follows:

ically short-lived. Theres little, if any, competioduct to market or having built an extremely st

ften results from a near monopoly or protecte

and stable, regardless of what your competitorsnjoys competitive advantages in certain segme

f equal strength, and you have to work to main

verall market is small, and market share is base

me other product differentiation. Strong compe

building their products and defining clear com

f market share, and your business line, as it exis

ARKETING PROCESS

place and customer needs and wants:

to understand customer needs and wants and

rder to understand the consumer, it is necesr, for a complete understanding of the marke

ood. Need are basic human requirements lik

the needs directed to specific product/service.y buying power.

en marketing strategy:

strategy, the marketing manager must answwe serve (whats our target market)? and H

value proposition)?

who it will serve. It does this by dividing

segmentation) and selecting which segments

ow it will serve targeted customers- how it will

.

marketing plan and program:rated marketing program that will actually del

arketing program builds customer relationshipn. It consists of the firms marketing mix, the

its marketing strategy. The firm must blend al

integrated marketing program that communicomers.

ionships

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for market share

or consolidating

ion, usually aong reputation

leadership.

are doing.ts of the market.

ain your

d on a niche, a

itors are

etitive

ts, is too small

the marketplace

ary to know histing process, the

food, security,

A demand refers

r two importantw can we serve

the market into

it will go after

differentiate and

iver the intended

by transformingset of marketing

these marketing

ates and delivers


7/34

It means the overall process of

delivering superior customer val

Step 5: Capturing value from

The final step involves capturinshare, and profits. By creatin

customers who stay loyal and bu

Step 6: Product planning/ pro

a. Idea generation:- New prsearch for new product ideas.

b. Idea Screening:- This proselecting ones which are feas

c. Concept Development andbelieve to be a feasible idea,

d. Marketing Strategy and Dproduct based on the producthe market?

e. Business Analysis:-The cowill the product be financiall

f. Product Development:- Deensure that the product idea

g. Test Marketing:- Test maproduct will be launched wmonitored and if needed.

h. Commercialization:- If thefor a launch. There are cerproduct is launched. These a

will be launched, etc.

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building and maintaining profitable customer

e and satisfaction

ustomers:

value in return in the form of current and futsuperior customer value, the firm creates

y more. This, in turn, means long run returns fo

uct development

duct development starts with idea generatio

.ess involves shifting through the ideas gene

ible and workable to develop.

Testing:- The organization may have comehowever, the idea needs to be taken to the targe

evelopment:- Designing an initial marketing s

concept. How will the product/service idea be

pany has a great idea, the marketing strategy se

y worth while in the long run?

eloping the product concept into a physical pran be turned into a workable market offering.g.

keting means testing the product within a s

ithin a particular region so the marketing mi

est marketing stage has been successful then th

ain factors that need to be taken into consire timing, how the product will be launched,

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relationships by

ure sales, markethighly satisfies

r the firm.

- the systematic

rated above and

across what theyaudience.

rategy for a new

launched within

ems feasible, but

oduct in order to

ecific area. The

strategy can be

e product will go

eration before ahere the product


8/34

PESTND AnPolitical EnvironmentThe political arena has a huge

power of consumers and other b How stable is the politica Will government policy i What is the government's What is the government's Does the government ha Is the government invol

others?

Demographic Environment

The Demographic forces that m

Marketers are keenly interestednations; age distribution and et

characteristics and movements.Explosive population growth has

mean growing market, unless

companies that carefully analyze

Economic EnvironmentThe available purchasing power

and credit availability. Marketerbecause they cant have a strong i

geared to high- income and pric

Macroeconomic indicators of ththe direction of economic growtreach more meaningful conclusi

The NCAER has classified India

Destitute: Annual housexchange for a wide rang

Aspirants: Annual housconsumption systems to i

Climbers: Annual houswillingness to buy, but h

Consuming:Annual homajority of consumers; h

Rich:Those who have mFor several product categories,

and the number of households wfor companies to introduce new

have just entered the market due

needs to be focused on utilizatio

Social- cultural environment

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alysis Macro Environmental Factors

influence upon the regulation of businesses,

sinesses. Factors such as:l environment?

nfluence laws that regulate or tax your business

position on marketing ethics?

policy on the economy?

e a view on culture and religion?

ved in trading agreements such as EU, NAF

rketer monitor is population, because people m

in the size and growth rate of population in cihnic mix; educational levels; household patte

major implications for business. A growing po

hese markets have sufficient purchasing po

their market can find major opportunities.

in an economy depends on current income, pri

must pay careful attention to trends affecting pmpact on business, especially for companies w

-sensitive consumer.

e country provide the overall health of the ech. A marketer needs to understand the distribuns about taking specific decisions.

n consumers into five categories

holds income of Rs. 16000; not active parti

e of goods.

eholds income of Rs. 16000 22000; newncrease in their real income.

eholds income between Rs. 22000- 45000;ve limited cash at hand

seholds income of Rs. 45000-215000; househ

ave money and are willing to spend.oney and own a wide range of products.he demand is likely to increase as results of

ith greater purchasing power. This gives additiomarket offers that address the needs of new

to their income increase. The marketing strate

these opportunities that are spin-off of the eco

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nd the spending

?

A, ASEAN, or

ake up marketer.

ies, regions, andns; and regional

pulation does not

er. Nonetheless,

e, savings, debt,

rchasing power,ose products are

nomy as well asion of income to

ipants in market

entrants into the

have desire and

lds that form the

rowth in income

nal opportunitiesconsumers who

y for companies

nomic growth.


9/34

Society shapes the beliefs, value

People absorb, almost unconscioto others, to organizations, to so

Some characteristics of social- c1. Persistence of culturalpersistence. Core beliefreinforced by schools, ch

are more open to change.

2. Shifts in secondary cuopen to change, market

potential. Societys majo

a. Peoples viewsthemselves versu

increased dramat

industry was a chb. Peoples views o

we-society. Co

improve their live

c. Peoples viewsorganizations but

companies are li

must.d. Peoples views o

American versu

decade.e. Peoples view o

mastery over nat

However, nature

expected to be sigf. Peoples views

thought-provokin

spiritual journey.

Natural EnvironmentDeterioration of the natural env

have been actively campaignishortage of drinking water in

environmental consciousness.

Some trend analysts labeled the

Shortages of raw mateseriously damaged and n

seriously depleted during

Increased pollution: It ivery serious. Far-sighteproducing environmenta

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, and norms that largely define consumer tastes

usly, a world view that defines their relationshiiety, to nature, and to the universe.

ltural environment are:values: Peoples core beliefs and values have

and values are passed on from parents tourches, business, and government. Secondary

tural values: Since secondary cultural valuers want to spot them and be able to capitali

cultural views are expressed in:

of themselves: People vary in their emphserving others. In the 1980s, personal ambitio

cally, with significant implications for marke

ef beneficiary.others:Observers have noted a shift from a

nsumers are spending more on products and

s rather than their image.

of organizations: People are willing toexpect them to become increasingly socially r

king themselves to worthwhile causes. Hones

society: This orientation influences consumpti

s buying abroad is an issue that will contin

nature: There is a growing trend toward pe

re through technology and the belief that na

is finite. Love of nature and sports associate

nificant trends in the next several years.f the universe: Studies of the origin of m

g ad campaigns are on the rise. Currently, A

This will probably take the form of spiritual in

ironment is a major global problem. Environm

g against pollution causing industries.the vicinity of the plant is an example o

pecific areas of concern were:

ials: Staples such as air, water, and wood pron-renewable such as oil, coal, and various mi

industrial expansion.

s a worldwide problem. Industrial damage to tcompanies are becoming environmentally

lly safe and recyclable or biodegradable go

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and preferences.

ps to themselves,

a high degree of

hildren and areeliefs and values

and beliefs aree on the change

asis on servingand materialism

ting. The leisure

me-society to a

ervices that will

work for largesponsible. Many

y in appeals is a

n patterns. Buy

e into the next

ples feeling of

ure is bountiful.

with nature are

n, religion, and

ericans are on a

dividualism.

entalists in India

eterioration andf the increasing

ducts have beennerals have been

e environment isriendly and areods. The public


10/34

response to these com

especially in third world

Government interventiconcerns to be more prapunishment, seems to b

regulation, marketers shfacing the world.

Environmentally sustaior even demanded that fi

but are also environmenta healthy economy and a

Technological Environment

One of the most dramatic fortechnology has released such wo

It has also released such mixed bMarketer should monitor the foll

Accelerating pace of chyears ago. Electronic res

office connected and mo

Ultimate opportunitiesplace in biotechnology,designer materials.

Varying R&D budgets:are forcing many compa

efforts.

Increased regulation ofpower to investing and bregulations concerning

technological changes.

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anies is encouraging. However, lack of a

ountries, is a major barrier.

n: in natural resource management has caus

ctical and necessary in business and industry.e the best policy for long-term results. Inst

uld help develop solutions to the material and

able strategies: The so-called green movemems produce strategies that are not only environ

lly proactive. Firms are beginning to recognizehealthy environment.

e shaping peoples lives is technology. Thnders as penicillin, open-heart surgery, and the

lessings as cell phones and video games.owing four trends in technology:

ange:many of todays common products werearchers are building smarter chips to make our

e responsive to change conditions.

for innovation: some of the most existing woomputers, microelectronics, telecommunicatio

increasing opportunities emerging ad a result

nies in South Asia to increase their research

technological change:government has expann potentially unsafe products. Marketers shoul

roduct safety, individual privacy, and other

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equate funding,

d environmental

Leadership, notad of opposing

energy problems

t has encouragedmentally friendly

the link between

ough the years,birth control pill.

not available 40cars, homes, and

k today is takingns, robotics, and

of globalization

nd development

ded its agenciesbe aware of the

areas that affect


11/34

An industry is a group of firms

(e.g. the car industry, the travel iSome industries are more profi

dynamics of competitive structuThe most influential analytical

Michael Porter's Five Forces Mo

Porter explains that there are f

industry profitability. These five

The threat of entry of ne The threat of substitutes The bargaining power of The bargaining power of The degree of rivalry bet

Threat of New EntrantsNew entrants to an industry canThe threat of new entrants large

some industries (e.g. shipbuildi

agency, restaurants). Key barrier

Economies of scale Capital / investment requ

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that market products which are close substitut

ndustry).table than others. Why? The answer lies in u

e in an industry.odel for assessing the nature of competition

del, which is described below:

ive forces that determine industry attractiven

"competitive forces" are

competitors (new entrants)

buyers

suppliers

een existing competitors

aise the level of competition, thereby reducingly depends on the barriers to entry. High entr

g) whereas other industries are very easy to

s to entry include

irements

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es for each other

nderstanding the

in an industry is

ss and long-run

its attractiveness.barriers exist in

enter (e.g. estate


12/34

Customer switching cost Access to industry distrib The likelihood of retaliat

Threat of SubstitutesThe presence of substitute prod

they limit price levels. The threa

Buyers' willingness to su The relative price and pe The costs of switching to

Bargaining Power of SuppliersSuppliers are the businesses that

items bought from suppliers (e.gcompany's profitability. If suppl

the company's industry is less att

There are many buyers a There are undifferentiate Suppliers threaten to i

threatening to set up thei

Buyers do not threaten to The industry is not a key

Bargaining Power of BuyersBuyers are the people / organizof buyers is greater when

There are few dominant Products are standardize Buyers threaten to integr Suppliers do not threaten The industry is not a key

Intensity of RivalryThe intensity of rivalry between

The structure of compmany small or equally smarket leader

The structure of incostsencourage competit

Degree of differentiatiohave greater rivalry; ind

less rivalry

Switching costs- rivalrya significant cost associsupplier

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ution channels

on from existing industry players.

cts can lower industry attractiveness and pro

of substitute products depends on:

bstitute

formance of substitutes

substitutes

supply materials & other products into the ind

. raw materials, components) can have a signifers have high bargaining power over a compa

ractive. The bargaining power of suppliers will

d few dominant suppliers, highly valued products

tegrate forward into the industry (e.g. branown retail outlets)

integrate backwards into supply

customer group to the suppliers

tions who create demand in an industry. The

uyers and many sellers in the industry

te backward into the industry

to integrate forward into the buyer's industry

supplying group for buyers

competitors in an industry will depend on:

etition - for example, rivalry is more intense

ized competitors; rivalry is less when an ind

dustry costs- for example, industriesors to fill unused capacity by price cutting

n- industries where products are commoditiesustries where competitors can differentiate th

is reduced where buyers have high switching cated with the decision to buy a product fro

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itability because

stry. The cost of

cant impact on ay, then in theory

be high when:

d manufacturers

argaining power

where there are

stry has a clear

ith high fixed

(e.g. steel, coal)ir products have

osts - i.e. there ism an alternative


13/34

Strategic objectives-rivalry is more intense.

degree of rivalry is less

Exit barriers- when badown factories) - then co

Identifyi

Identifying the CompetitorsWe can examine competition fr

group of firms that offers a pro

Marketers classify industries acpresence or absence of entry,

integration and degree of globali

Using the market approach, coa customer who buys a word pr

be satisfied by pencil, pens or t

set of actual and potential comCoca-cola, focused on its soft dr

and fresh fruit juice bars that cut

Analyzing competitors

After the company has conducarefully, it can focus its attack

weak, close versus distant and g

Strong versus Weak: Mrequires fewer resourcesstrong competitors to

weakness.

Close versus Distant:the most. Chevrolet coidentify distant competit

water, not Pepsi. Museu

Good versus Bad:Everplay by the industrys r

favor a health industry.

large risks they invest in

may find necessary to apractices.

C

A company can gain further ins

the target market: leader, challecompany can take specific actio

Marketing Leader Strategy:

Jain College of MCA

hen competitors are pursuing aggressive ghere competitors are "milking" profits in a ma

rriers to leaving an industry are high (e.g. thmpetitors tend to exhibit greater rivalry.

g and Analyzing the Competitors

m both an industry and market point of view.

uct or class of products that are close substitu

ording to numbers of sellers degree of produmobility and exit barriers cost structure d

zation.

petitors are companies that satisfy the same cu ocessing software really wants writing ability

pewriters. The market concept of competition

etition in traditional category and industry aninks business, missed seeing the growing mark

into sales of its carbonated beverages.

cted customer value analysis and examinedon one of the following classes of competito

od versus bad.

ost companies aim their shots at weak competi

per share points gained. Yet, the firm should aeep up with the best. Even strong compet

ost companies compete with the competitors thpetes with Ford, not with Ferrari. Yet comprs. Coca cola recognizes that its number one

now worry about theme parks and malls.

industry contains good and bad competitors.les they set prices in reasonable relationship

ad competitors try to buy share rather then

overcapacity and they upset industrial equilibr

ttack its bad competitors to reduce or end th

MPETATIVE STRATEGY

ight by classifying its competitor and itself ac

ger, follower, or nicher.On the basis of this

in line with its current and desired roles.

MBA, Belgaum

owth strategies,ture industry, the

cost of closing

An industry is a

e for each other.

ct differentiationgree of vertical

stomer need. Ex:a need that can

reveals a broader

industry terms.t for coffee bars

its competitorsrs: strong versus

ors, because this

lso compete withitors have some

at resemble themnies should alsoompetitor is tap

ood competitorsto costs and hey

arn it, they take

ium. A company

ir dysfunctional

ording to role in

lassification, the


14/34

Most industries contain an ackn

and usually leads the other ficoverage, and promotion spend

other firms concede its dominanimitate or avoid. Some of the

Microsoft (computer software),To remain number one, leading

expand total demand. Second, th

and offensive actions. Third, thsize remains constant.

Market Challenger Strategies:

Many market challengers have gmust first define its strategic obj

must decide whom to attack.

strategy if the leader isnt servisize that are underperforming a

or arent satisfying customers in

Market Follower Strategy:

Following is not the same as bemust know how to hold current

balance between following cl

following at enough of a distaadvantages to its target market-l

of attack by challenger. Theref

prices low or its product qualityup.

Market- Nicher Strategies:

An alternative to being a follow

Small firms normally avoid cominterest to the large firms. Even

for specific niches. The key ide

the firm must continually credeveloping strength in two or m

Jain College of MCA

wledged market leader. The leader has the lar

rms in price changes, new-product introducing. The leader may or may not be admired

ce. Competitors focus on the leader as a compbest known market leaders are the Future

tc.firms can take any three actions. First, they

ey can protect their current market share throug

y can try to expand their market share furthe

ained ground or even overtaken the leader. Aective ; most aim to increase market share. Th

ttacking the leader is a high-risk but potent

g the market well. The challenger can attackd underfinanced, have aging products, charge

other ways. Or it can attack small local and regi

ing passive or a carbon copy of the leaders. Austomers and win fair shares of new ones. It

sely enough to win customers from the m

nce to avoid relation. Each follower tries tocation, services, financing. The follower is oft

re, the market follower must keep its manufa

and services high. It must also enter new ma

r in a large market is to be a leader in a small

peting with large firms by targeting small mararge, profitable firms are now setting up busin

in nichemanship is specialization. Because ni

ate new niches, expand niches, and protecre niches, the company increases its chances fo

MBA, Belgaum

est market share

ion, distributionr respected, but

any to challenge,roup (retailing),

an find ways to

h good defensive

, even if market

arket challengern the challenger

ally high-payoff

firms of its ownexcessive prices,

onal firms.

market followerust find the right

arket leader but

bring distinctiveen a major target

turing costs and

ket as they open

market or niche.

ets of little or noss units or brand

che can weaken,

its niches. Byr survival.


15/34

Le

The starting point for segmentat

the mass production, mass districlaims that mass marketing is d

four levels: segments, niches, lo

Segment MarketingA market segment consists of a

Rather than creating the segmeone(s) to target. The company c

service and also can fine-tune t

marketing. e.g.:- automobile co

different features

Niche Marketing

A niche is more narrowly deMarketers usually identify nichliquid detergent from Godrej

Local Marketing

Local marketing reflects a groconcentrate on getting as close a

Much Nikes initial success

marketing such as sponsorship

shoes, clothing and equipment.

Individual Marketing

The ultimate level of segmentati

one marketing. Customizatiocustomized marketing in a wa

offering of their choice. A com

customersby customizing its procredit card, offered by united ba

Bases FSome researchers try to define

Demographic and Psychographidifferent needs or product respo

Geographic Segmentation

Geographic segmentation callsNations, states, regions, countri

unban

Demographic SegmentationIn demographic segmentation, wage, family size, family life

generation, nationality and socia

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els of Market Segmentation

ion is mass marketing. In mass marketing, the

bution, and mass promotion of one product forying. Most companies are turning to micro ma

al areas and individuals.

group of customers who share a similar set of

nts, the marketers task is to identify them aan often better design, price, disclose and deliv

e marketing program and activities to better re

panies in India offer different versions of the

ined customer group seeking a distinctivees by dividing a segment into sub segments.

wing trend called grassroots marketing. Mand personally relevant to individual customers

omes from engaging target consumers th

f local school terms, expert conducted clinics

n leads to segments of one Customized mark

n combines operationally driven mass custhat empowers consumers to design the pro

pany is costomerized when it is able to resp

ducts, services and messages on one-to-one bask limited, Pakistan.

r Segmenting Consumer Marketssegments by looking at descriptive characteris

. Then they examine whether these customerses.

or division of market into different geographies, cities or neighborhoods. e.g Region, City,

e divide the market into groups on the basis ofycle, gender, income, occupation, educatio

l class.

MBA, Belgaum

seller engages in

all buyers. Somerketing at one of

needs and wants.

nd decide whicher the product or

flect competitors

same model with

mix of benefits.e.g.:- EZEE the

keting activitiess possible. e.g.:-

ough grassroots

and provision of

ting or one-to-

tomization withduct and service

nd to individual

is. e.g.:- Galleria

ics: Geographic,

segments exhibit

cal units such asRural and semi

variables such as, religion, race,


16/34

Age and Life cycle staage and life cycle stage

Johnsons baby soap

Life stage: It defines ahome, planning for retire

Gender:Men and womegenetic makeup and parminded and men tend to

Income: Income deterexchange and hence this

Generation:Each generthe music, movies, politi

Social class:Social clashabits and retailers. The

Psychographic Segmentation (

In Psychographic segmentatio

psychological/ personal traits, li

The four groups with higher reso

Innovators- successful,esteem.

Thinkers- mature, satisvalue order, knowledge,

Achievers-Successful, g Experiencers- Young, e

The four groups with lower reso

Believers- Conservative, Strivers- Trendy and fun-

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e:Consumer wants and abilities to change wits are important variables to define segments

ersons major concern, such as getting marriedment so on.

n have different attitudes and behave differentltly on socialization. e.g.:- women tend to bee more self-expressive and goal directed.

ines the ability of consumers to participat

is a basic segmentation variable.

tion is profoundly influenced by the times in w s and defining events of that period.

has a strong influence on preferences in cars,oncept of social class in India is influenced by

ALS Value and Lifestyle Segment)

, buyers are divided into different groups

e styles, or values.

urces

sophisticated, active, take-charge people

ied, and reflective people who motivated by

nd responsibility.

oal oriented people who focus on career and fa

thusiastic, impulsive people who seek variety arces

conventional, and traditional people with conce

loving people who are resource constrained.

MBA, Belgaum

age. Therefore,.g.:- Johnson &

, deciding to buy

, based partly onmore communal

in the market

hich it grows up-

clothing, readinghe caste system.

on the basis of

with high self-

ideals and who

ily.

nd excitement.

ntrate beliefs.


17/34

Makers- Practical, dowhands.

Survivors- Elderly, passiBehavioral SegmentationIn behavioral segmentation, mar

of, attitude toward, use of, or res

Decision Roles- peoplebuyer, and user.

Behavioral variableso Occasions- greet

different occasion

o Benefits- Targeteo User status-ever

and regular user.

o Usage rate- marusers.o Buyers- readines

aware, some are iintend to buy.

o Loyalty status Hard core Split loyal Shifting l Switchers

o Attitude- five atnegative, and hos

Bases fDemographics

Industry Company size Location

Operating variables

Technology User or nonuser status Customer capabilities

Purchasing approaches Purchasing-function Power structure Nature of existing relatio General purchasing polic Purchasing criteria

Situational factors

Urgency

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-to-earth, self-sufficient people who like to

e people who are concerned about change.

keters divide buyers into groups on the basis o

ponse to a product.

lay five roles in a buying decision: initiator, in

ing card brands such as Archies and Hallmar

s.d at people who seek different sets of benefits.

y product has its nonuser, ex-user, potential us

kets can be segmented into light, medium, an

s stage- some people are unaware of the pr

nformed, some are interested, some desire the p

loyals- consumers who buy only one brand alls- consumers who are loyal to two or three bra

yals- consumers who shift loyalty from one bra

consumers who show no loyalty to any brand.

itudes about products are: enthusiastic, posi

ile.

or Segmenting Business Markets

nship

ies

MBA, Belgaum

work with their

their knowledge

luencer, decider,

make cards for

r, first time user

d heavy product

oduct, some are

roduct, and some

he timeds

nd to another.

tive, indifferent,


18/34

Specific application Size order

Personal characteristics

Buyer-seller similarity Attitude towards risk Loyalty

Market Targeting

There are many statistical tec

identified its market segments o

Effective segmenting criteria

Measurable:The size, pmeasured.

Substantial:The segmenthe largest possible hoprogram.

Accessible:The segment Differentiable:The seg

different marketing-mix

Actionable:Effective proSteps involved in segmentation

Single segment concentr Selective specialization Product specialization Market specialization Full market coverage

POSITI

Product Position And PositioniThe way the product is define

occupies in consumers minds reEg.1.Dalda positioned as a demo

The act of designing the compan

of target market is called as the

Positioning Is RequiredAs a marketer, it is your opportu

Clear and meaningfuladvertising and marketinpositioning gives your m

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niques for developing market segments. On

portunities, it must decide how many and whic

urchasing power, and characteristics of the

ts are large and profitable enough to serve. A sogeneous group worth going after with a ta

can be effectively reached and sevred

ents are conceptually distinguishable and resplements and program

gram can be formulated for attracting and servi

process

tion

NING & POSITIONING STRATEGY

ng Of A Productd by consumers on important attributes- the

lative to competing products is called as the prnstration of maternal love.

ys offering and image to occupy a distinctive

ositioning of a product.

nity to influence the markets perception of you

product positioning also helps you cut th g noise of the market place, in your consume

ssage some context so they can be better heard

MBA, Belgaum

ce the firm has

ones to target.

egments can be

gment should beilored marketing

nd differently to

g the segments

lace the product

oduct position.

lace in the mind

r products.

rough relentlessrs mind, productand accepted.


19/34

A product's life cycle (PLC) cgenerated by the product. If a cu

of many different shapes, an exaProduct Life Cycle Curve

The life cycle concept may appl

short as a few months for a fagasoline-powered automobile.

Product development is the in

the firm prepares to introduce

changes in the marketing mix uand opportunities.

Introduction Stage

When the product is introduced,and its benefits. During the i

associated with the initial distrib

volume usually make the introdstage, the primary goal is to est

Marketing Strategies for Intro

Product -one or few Price -Generally hi

the early adopters bquickly. In some cas

are set low to gain m

Distribution - Distimplementation of th

Promotion - Promoincentives may be di

intended to convince

Growth StageThe growth stage is a period of

aware of the product and its b

Jain College of MCA

Product Life Cyclen be divided into several stages characterizeve is drawn showing product revenue over tim

mple of which is shown below:

y to a brand or to a category of product. Its du

item or a century or more for product categ

ubation stage of the product life cycle. There

the product. As the product progresses throu

sually are required in order to adjust to the ev

sales will be low until customers become awatroductory stage the firm is likely to incur

tion of the product. These higher costs couple

ction stage a period of negative profits. Durinblish a market and build primary demand for t

uction Stage are

products, relatively undifferentiated

h, assuming a skim pricing strategy for a highy the product and the firm seeks to recoup ds a penetration pricing strategy is used and in

rket share rapidly.

ribution is selective and scattered as thedistribution plan.

tion is aimed at building brand awareness.ected toward early adopters. The introductory

potential resellers to carry the product.

apid revenue growth. Sales increase as more c

nefits and additional market segments are ta

MBA, Belgaum

by the revenue, it may take one

ration may be as

ries such as the

are no sales and

h its life cycle,

lving challenges

re of the productadditional costs

with a low sales

the introductionhe product class.

profit margin asvelopment costs

troductory prices

irm commences

Samples or trialromotion also is

stomers become

rgeted. Once the


20/34

product has been proven a succ

as more retailers become intedistribution at this point. When

growth stage, there may be priconvince consumers that the fi

growth stage, the goal is to g

strategy may be modified as fo

Product -New product f Price - Maintained at a

customers.

Distribution - Distributresellers show a strong in

Promotion- Increased aMaturity Stage

The maturity stage is the most pso at a slower pace. Because bra

Competition may result in dec

encouraging competitors' custonon-users into customers. Sales

product more shelf space over c

to maintain market share andinclude:

Product - Modificationsproduct from competing

Price - Possible price red Distribution - New distlosing shelf space. Promotion- Emphasis o

competitors' customers t

Decline StageEventually sales begin to dec

technologically obsolete, or cust

the profitability may be maintainvolumes and eventually no more

During the decline phase, the fir

Maintain the product in h Harvest it, reducing mark Discontinue the product

The marketing Strategy may b Product - The number

surviving products to ma

Price - Prices may be lmay be maintained for co

Jain College of MCA

ss and customers begin asking for it, sales wil

rested in carrying it. The marketing teamcompetitors enter the market, often during the

ce competition and/or increased promotionalm's product is better than that of the compet

ain consumer preference and increase sales.

lows:

eatures and packaging options; improvement of

high level if demand is high, or reduced to c

ion becomes more intensive. Trade discountterest in the product.

vertising to build brand preference.

ofitable. While sales continue to increase into td awareness is strong, advertising expenditure

eased market share and/or prices. The firm

ers to switch, increasing usage per customerpromotions may be offered to encourage ret

mpeting products. During the maturity stage, th

extend the product life cycle. Marketing mi

are made and features are added in order to

roducts that may have been introduced.

uctions in response to competition while avoidi

ribution channels and incentives to resellers i

n differentiation and building of brand loyalty.switch.

ine as the market becomes saturated, the

omer tastes change. If the product has develop

ed longer. Unit costs may increase with the decprofit can be made.

generally has three options:

opes that competitors will exit. Reduce costs an

eting support.hen no more profit can be made or there is a s

e modified as follows:of products in the product line may be red

e them look new again.

owered to liquidate inventory of discontinuedntinued products serving a niche market.

MBA, Belgaum

l increase further

ay expand thelater part of the

osts in order totion. During the

The marketing

product quality.

apture additional

are minimal if

is stage, they dowill be reduced.

laces effort into

, and convertingilers to give the

e primary goal is

decisions may

differentiate the

ng a price war.

n order to avoid

Incentives to get

roduct becomes

ed brand loyalty,

lining production

d find new uses

ccessor product.

ced. Rejuvenate

products. Prices


21/34

Distribution - Distribuprofitable are phased out.

Promotion - Expenditucontinued products.Limitations of the Product Lif

The term "life cycle" impliesproducts do not have such a p

different products vary substanti

the forecasting of product sales.Nonetheless, the product life cyc

strategies to address the challe

monitoring sales results over ticycle.

Styl

Three special categories of profads.

Style: A Style is a basic and

endeavor. Styles appear in homand art (realistic, surrealistic, a

vogue.

Fashion: A fashion is a curre

through four stages: distinctivefashion cycle is hard to predict.

cycle depends on the extent to

trends in the society, satisfies

limits as it develops.

Fads: Fads are fashions that coearly, and decline very fast. T

limited following of those whofrom others. They often have a

Fads do not survive because the

are those who recognize fads earsuccess story of a company that

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tion becomes more selective. Channels tha

res are lower and aimed at reinforcing the

Cycle Concept:-

well-defined life cycle as observed in livinredictable life and the specific life cycle cur

ally. Consequently, the life cycle concept is n

le concept helps marketing managers to plan al

ges that their products are likely to face. It

e and comparing them to those of products ha

e, Fashion, and Fad life cycles

uct life cycles should be distinguishedstyl

istinctive mode of expression appearing in

s (colonial, ranch, Cape Cod); clothing (formastract). A style can last for generations, and

tly accepted or popular style in a given fiel

ness, emulation, mass-fashion, and decline.illiam Reynolds suggests that the length of a

hich the fashion meets a genuine need, is con

ocietal norms and values, and does not exce

me quickly into public view, are adopted witheir acceptance cycle is short, and they tend

are searching for excitement or want to distinnovel or capricious aspect, such as body pierci

y do not normally satisfy a strong need. The m

ly and leverage them into products with stayinganaged to extend a fad's life span.

MBA, Belgaum

no longer are

brand image for

organisms, butves followed by

t well-suited for

ernate marketing

lso is useful for

ing a similar life

s, fashions, and

field of human

l, casual, funky);go in and out of

. Fashions pass

The length of aarticular fashion

istent with other

ed technological

great zeal, peakto attract only a

uish themselvesng and tattooing.

arketing winners

power. Here is a


22/34


23/34

New Stage 1: Idea Generati

search for the ideas. Id

scientists, competitors, erequired for the idea geNirlep non stick cookwa

cookware.

Stage 2: Idea Screening Promising ideas Marginal ideas Rejected ideas

In this process care must

A drop error It A go error In t

Stage 3: Concept Develidea expressed in meaniconcept we will consider

powder to add to the m

turned into several concwhat primary benefits sh

Concept 1 Anutritious breakfa

Concept 2- A ta Concept 3 a he

Each concept defines co

It involves presentintheir reaction. This isreality to test the c

surveys. Elaboration of our pr

Our product is a pow

that gives the persoconvenience. The pr

strawberry ) and wou

Consumer will respo Are benefits c

Do you see th Do other prod Is price reaso Would you bu Who would u When and ho

Jain College of MCA

Product Development Processon The development process starts with ideeas can come from many sources like cust

ployees, channel members and top managemeration the most important stimulus can be nre ( requirement of quickly heated less oil co

-this is nothing but sorting the ideas into three

taken to avoid the following errors

occurs when a good idea is dropped.

is case a poor idea may move to the product de

opment and Testing Concept is an elaboratgful consumer terms. Concept development following example.e.g.A company gets the id

lk to increase its nutritional value and taste.

pts by giving answers to the questions likeould the product provide ? And when people wi

instant breakfast drink for the adults wh

st without preparing breakfast.

sty snack drink for children to drink as middaylthy supplement for older adults to drink befor

petition. The company should decide which th

the product concept to appropriate target consdone symbolically or physically. Small plastic

ncepts. This is carried out using focus gro

duct for the survey.

dered mixture that is added to milk to make an

n all the needed nutrition along with goododuct would be offered in three flavors (Ch

ld come in individual packets, six in box at Rs.

d following questions after reviewing the abov

lear to you and believable?

is product solving a problem or filling a need yucts currently meet this need and satisfy you?

able in relation to value?y the product?

e the product?

often will the product be used?

MBA, Belgaum

a generation andmers, suppliers,

nt etc. Stimuli ised or want. e.g.sumption pan or

categories.

velopment stage.

ed version of theto elaborate thisa of producing a

his idea can be

ho will use it?,ll consume it ?

wants a quick

efreshment .they go to bed.

feasible one is.

umer and gettingmodels or virtual

p interviews or

instant breakfast

taste and highocolate, Vanilla,

18 per box.

information.

u have?


24/34

Conjoint Analysis A methodfor derivinproduct attributes. At

relative importance oStage 4: Marketing Strategy Dev Top management mu

the new product into

The plan consists of t Target market size, st

500,000 cases with l

planned profits of Rs.

Second part outlinese.g. Six packets to aoffered 1 free case fo

newspapers etc., ad.

Third part describes tand subsequent years.

Stage 5: Business Analysis

To study the proposaprojections to deter

concept can move to

Estimating total salereplacement sales anpurchase , infrequent

Stage 6: Product Development

In this stage detailed tecproduced at costs. Work

attributes of the product

prototype. Developing amonths and even years.

This stage involves follo1. Developing attributes2. Product development3. Legal and regulatory4. Production requireme

Stage 7: Product Use Testing After prototype is ready t

tests. It is done using tec Product testing helps in

1. Comparing new prod2. Knowing performanc3. Ensuring that the pro4. Finding out how cust5. Customers preferenc6. Reasons for dissatisfa

Jain College of MCA

g the utility values that consumer attach to vartributes like package design, prices, brand nam

each attribute to the consumer is studied.lopmentst develop a preliminary marketing strategy plamarket.

hree parts.

ructure and behavior e.g. the company will aioss not exceeding Rs. 25 lacs, second year 70

10 lacs.

the planned price, distribution strategy and

box and 48 boxes to a case., for 1sttwo mont

r every four cases purchase, coupon for 10 %

xpenses

he long term sales and profit goals e.g. market.

ls business attractiveness, for that they prepareine whether they satisfy company objective

he product development stage.

Total estimated sales are the sum estimat

repeat sales. It depends upon whether the prpurchase or frequently purchased.

nical analysis is conducted to know whether ting model is developed which reveals tangib

s . It is job of translating customer requirem

d manufacturing a successful prototype can t

ing functions.

of the new products.schedule.

issues regarding the new product.

nt for developing the new product.

hey must be put through rigorous functional tes

niques like Alpha testing, Beta testing, and Ga

cts with existing ones.

e safety, acceptability of features like colours, s

uct perceived as intended.mers uses the products

s

ction.

MBA, Belgaum

ing levels of thee. In this method

n for introducing

m initially to sell0,000 cases with

arketing budget.

s dealers will beff will appear in

share for 1styear

sales, cost profit. If they do the

d 1st time sales,

duct is one time

e product can bee and intangible

nt into working

ke days, weeks,

s and customer

ma testing.

ize, weights etc.


25/34

Stage 8: Test Market

In this stage the companthe product and giving it

promotional campaign.1. How many test cities2. Which cities?3. Length of test4. What information?5. What action to take?

Stage 9: Commercialization The results of test mark

marketing mix before entproduction, distribution

guarantees, warranties, re

The company also has toconcerned.

1. When to launch? fi2. Where to launch?- G3. To whom to market?4. How to market?

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chooses few cities. Sales force tries to sell thea good shelf exposure. Company put on full ad

arketers need to decide on following issues

ting help marketers decide the changes that a

ering the market. It also helps the marketer decistrategy, selling efforts and other issues

placement services etc.

answer following question as far as launching

st entry against the competitor , parallel entry o

ographical location

MBA, Belgaum

rade on carryingertising and

re needed in the

de the amount oflike providing

of the product is

r late entry.


26/34

What is product?

Product is anything that can begoods, services, experiences, ev

ideas.

Explain the different levels ofThe marketer needs to address fi

five constitute a customer value

I. Core benefit : Thecustomer is really bu

purchaser of a drillproviders.

II. Basic product: At tbasic product. Thus fdresser, and closet.

III. Expected product:set of attributes and

product. For exampland a relative degree

IV. Augmented producproduct that excepositioning and com

markets such as Ind

expected product levV. Potential product

encompasses all the

offering might under

to satisfy customers a

Classification of product

It is classified on the basis of du

I. Durability and t Nondurable

few uses, suc

frequently, t

locations, chaand build pref

Durable goorefrigerators,

more personamore seller gu

Service : ThAs a result, t

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ffered to a market to satisfy a want or need, ients, persons, places, properties, organization,

roductve product levels. Each level adds more custo

ierarchy.

undamental level is the core benefit, the servi

ing. For example : A hotel guest is buying res

is buying holes. Marketers must see them

he second level, the marketer must turn the co

r example, a hotel room includes a bed, bathro

At the third level, the marketer prepares an exp

conditions buyers normally expect when th

, hotel guest expect a clean bed, fresh towels,of quiet.

: At the fourth level, the marketer prepar

eds customer expectations. In developedpetition take place at this level. In developi

ia and Brazil, however, competition take pla

l.: At the fifth level stands the potential

possible augmentations and transformations

go in the future. Here is where companies sear

nd distinguish their offering.

rability, tangibility and use.

ngibility classification

oods: They are tangible goods normally consh as soft drinks and soaps. Because these goo

e appropriate strategy is to make them av

rge only a small markup, and advertise heavierence.

s : These are tangible goods that normally sumachine tools, and clothing. Durable products

l selling and service, command a higher maarantees.

y are intangible, inseparable, variable and perhey normally require more quality control, su

MBA, Belgaum

cluding physicalinformation, and

er value, and the

ce or benefit the

t and sleep. The

elves as benefit

re benefit into a

m, towels, desk,

ected product , a

y purchase this

working lamps,

s an augmented

ountries, brandg and emerging

e mostly at the

product, which

the product or

ch for new ways

med in one or as are purchased

ailable in many

y to induce trial

vive many uses:normally require

gin, and require

ishable products.pplier credibility


27/34

and adaptabil

repairs.

II. Consumer-good

Convenientthe require

buy these timpulse goo

(rain coats,

These prodneed to mak

Shoppingthe basis of

efforts to bcars, and m

Specialtyidentificatio

special purwill travel f

Unsoughtdoes not no

personal-sel

III. Industrial goods Raw mat

product co

For exampl

Manufactcomponentmotors, tir

Capital gomanaging

equipment.

equipment

Process messential fo

Consumaand they ar

Factory eincludes pother offic

Other serservices t

Businessadvisory se

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ity. Examples include haircuts, legal advic

classification

goods : The products which consumer frequent is immediate and the consumers makes mi

pes of product. For example, soft drinks, sods (chocolates, candy bars, potato chips, etc.),

weaters, etc.).

cts are placed where consumers are likely to ee a purchase.

oods: They are goods that the consumer makprices, quality, and style. Here the consumer

y these types of product. For example, furnitujor appliances.

oods : These goods have unique charactn for which a sufficient number of buyers are

hasing effort. For example, cars, house, etc.r to buy the product.

oods :Those goods which consumer does nrmally think of buying. These products requir

ling support. For example, smoke detectors, life

classification

rial : These are the goods which enter th

pletely. These mainly consist of farm goods a

e, wheat, cotton, crude petroleum, iron ore, etc.

ring material and parts : These fall into twmaterial (iron, yarn, cement, wires) and comp

s, castings).

ods : These are long lasting goods that facilithe finished product. They include two groups

Installation consist of building (factories, of

.

terial: These goods dont become part of finr processing. For example, oils, coolers, etc.

le goods: These are small parts of the final ore bought regularly. For example, nails.

uipments : These equipments used to make firtable factory equipments and tools (hand toolequipments (personal computers, desks).

ices : Supplies and business services are shorat facilitate developing or managing the

ervices include maintenance and repair srvices.

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and appliance

ntly purchases,nimum efforts to

aps, newspapers,mergency goods

perience an urge

s comparison onakes maximum

e, clothing, used

ristics or brandilling to make a

Here consumers

t know about oradvertising and

insurance, etc.

manufacturers

d natural goods.

o categories ,i.e.nent parts (small

te developing or: installation and

ices) and heavy

l product but are

inished products

nal products ands, lift trucks) and

term goods andinished product.

rvices, business


28/34

Product hierarchy

The product hierarchy stretchescan identify six levels of the pro

Need family : The core need tsecurity, fabric care system.

Product family : All the preffectiveness. For example, savi

Product class : A group of pro

functional coherence. Also knorelated because they perform a

marketed through the same outl

may consist of different brands,extended. For example, life insu

Product type :A group of item

the product. For example, term li

Item :A distinct unit within a b

some other attribute. For exampl

Brand Identity

Brand Identity includes brandpersonality, brand toons etc. A

positive associations with the br

in, what benefits it provides anemotion, culture and myth to b

Jello), a character (Pink Panther)

Tools used for Building BrandBrand builders use a set of to

typically exhibit an owned word,

Owned Word :A strongis the list of brands that o

SloganMany companies succes

repeated in every ad theon the street may easily r

Colors: It helps for a cobrand recognition. Catercolor of Kodak film. IB

Symbols and LogosCompanies would be wise tcompanies hire a well-kno

brand. Nike uses Michael

advertise its shoes. Sporting

their symbols, even naming t

Cartoons and AnimatioA less expensive approach iscustomers mind. The adver

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rom basic needs to particular items that satisfyuct hierarchy,

at underlines the existence of a product fami

duct classes that can satisfy a core needgs and income.

ducts within the product family recognized as

wn as a product category. For example, finasimilar function, are sold to the same cust

ts or channels, or fall within given price range

or a single family brand, or individual brand tance.

within a product line that share one of several

fe insurance.and or product line distinguishable by size, pric

e, ICICI Prudential renewable term life insuran

names, logos, positioning, brand associatgood brand name gives a good first impres

and. A positioning statement tells what busines

why it is better than the completion? Brandand identity by the use of a famous spokesper

, an animal (the Merrill lynch bull) etc.

Identity?ls to strengthen and project the brand imag

a slogan, a color, a symbol, and set of stories.brand name should trigger another word, a fav

wn a word

sfully added a slogan or tagline to their bran

use. Here are some well-known brands slogacall or recognize:

mpany or a brand to use a consistent set of c

illar paints all its construction equipments yelluses blue in its publications, and IBM is calle

adapt a symbol or logo to use in their commn spokesperson, hoping that his or her qualit

Jordon who has worldwide recognition an

goods manufacturers sign contracts with top at

he product after them.

nsto develop a character, animated, to etch the bising agency Leo Burnett has successfully cre

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those needs. We

ly. For example,

with reasonable

having a certain

cial instrumentsmer groups, are

s. A product line

hat has been line

ossible forms of

e, appearance, or

e.

ons, and brandsion and evokes

s the company is

personality addsson (Bill Cosby-

; Strong brands

orable one. Here

name which is

ns, which people

lor to and in the

w. Yellow is theBig Blues.

nications. Manyy transfer to the

likableness, to

hletes to serve as

ands image intoted a number of


29/34

memorable animated charac

may recognize:

Objects: Still another apThe travelers insuranceequivalent to having an

company features the rocto owing a peace of ro

developed many logos oway the brand name is w

Measuring Brand Effectivenes

There are many metrics to me

simplest way is to apply the c

distinctiveness, defendable, digit

Distinctiveness: your brall spoken and visual coThe more unique and d

competitive strength itdistinctiveness of your br

Differentiation: the braclearly articulate the spec

Defendable: you will bbrand must have proprie

Company

ICICI Pruden

Amul Butte

McDonalds

All Out mosquito

Pillsbury

7 Up

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ters. Here are some well known brand cartoo

proach is to choose an object to represent a c

company uses an umbrella, suggesting that buumbrella available when it rains. The pru

k of Gibraltar, suggesting that buying an insurack which is of course, solid ad dependable.

r abstracts, which are easily remembered byitten makes a brand recognizable and memorab

sure the potential of and actual effectivenes

ncept of what we call the 4 Ds of Brandin

-able.

nd should be distinct when compared to your c

mmunications to which your target audiencesistinct your communications, the wider the

will have. There are simple means to aand.

d strategy and brand assets must set youre oific positioning intent of your offering.

investing in creating your brand assets andtary strength to keep others from using close

Cartoon or Animatio

ial

r

epellent

Chintamani

Utterly Butterly Girl

Ronald

Louis

Doughboy

Fido Dido

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ns which people

mpany or brand.

ying insurance isential insurance

nce is equivalentCompanies have

eople. Even thele.

of brands. The

; differentiation,

mpetitors and to

will be exposed.iled of effective

ply to test the

ffering apart and

in all cases yourapproximations.

n


30/34

This applies to your trad

symbols and other visual

Digit-able: in most bucommunications and cotactile and electronics for

Define the Brand: Any indexperiences, beliefs, perception

Coca-Cola is a company brand,

A Product from a known source

Choosing a Brand Name

A brand name first must be ch

through brand identity work. In

positioning of the brand. In

possibilities: it could choose nairlines), quality (Safety stores,

Among the desirable qu It should suggest somethi It should suggest product It should be easy to pr

recognize the product to

It should be distinctive. It should not carry poor Building Positive Associ

The best known brand names ca

say they associate with McDonal

Kids Fun Happy Meal Ronald Mc. Donald Quality Toys

In trying to build a rich set

consider five dimensions that ca

Attributes: A strong bMercedes automobile att

and expensive. If a carbrand.

Benefits: A strong bratriggers the idea of well

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e names and other proprietary words as well

assets.

sinesses there is strong and growing eleme

merce that dictate all brand assets be leveram. This goes for all brand assets.

vidual a brand (in his mind) is a complexand associations that have grown up over ti

product brand, a service brand and a brand wit

is brand.

osen then its various meanings and promises

choosing a brand name, it must be consiste

naming a product or service the company

me of the person (Honda, Calvin Klein), loealthy choice), or an artificial name (Exxon, K

alities of a brand name. Some are:

ng about the product benefits.

qualities such action or color

nounce, recognize and remember; short na

he customers.

eanings in other countries and languages etc.

ationsrry associations. For example, here is a list of

ds:

f positive associations for a brand, the bran

communicate meaning:

and should trigger in buyers mind certain aributes a picture of well-engineered car that is

brand does not trigger any attribute, then it

d should suggest benefits, not just features.

erforming car that is enjoyable to drive and pre

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s to your logos,

nt of electronic

ed effectively in

combination ofe. For example

h a long history.

must be built up

t with the value

may face many

ation (Americanodak).

es help a lot to

ords that people

builder should

tributes. Thus adurable, rugged

ould be a weak

Thus Mercedes

stigious to own.


31/34

Company Values: A strMercedes is proud of its

efficient in its operations

mind of the buyers about Personality: A strong b

were a person we would

somewhat authoritarian.personality.

Users:A strong brand swould expect Mercedes t

Brand Element Choice CriteriThere are six criteria in choosin

building in terms of how brand

The latter three are more defensi

brand element can be leveragconstraints.

Memorable:How easiltrue at both purchase and

Meaningful: To whatcorresponding category?

of person who might use

Likeability: How aestheinherently likeable visua

Wheel, Sunsilk etc evoke

Transferable: Can a brdifferent categories? Togeographic boundaries a

Adaptable: How adaptamakeovers through the y

Protectable: How legaprotectable? Can it be eawith product categories s

and not become generic.

Brand Equity: There is no un

different things for different cothree distinct elements:

The total value of a bransheet.

A measure of the strengt A description of the asso

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ong brand should connote values that the comngineers and engineering innovations and is ve

. The fact that it is a German company adds mo

the character and the culture of the brand.rand should exhibit some personality traits.hink of someone who is middle age, serious, w

f Mercedes were an animal we might think of l

hould suggest the type of people who buy theo draw buyers who are older, affluent and profe

g brand element. The first three can be chara

equity can be build through judicious choice

ve and are concerned with how the brand equit

ed and preserved in the face of various o

is the brand element recalled? How easily reconsumption? Short brand name like tide, Nike

extent is brand element credible and su

Does it suggest something about a product in

the brand?

tically appealing does consumers find the brally, verbally, and in other ways? Concrete bra

much imagery.

nd element be used to introduce new product

what extent does the brand element add to brd market segments?

le and updatable is the brand element? Bettyars-although she is 75 yrs old, she doesnt look

lly protectable is the brand element? Hosily copied? It is important that names that becuch as Kleenex, Xerox, Jell-O, etc retain their

iversally accepted definition of brand equity.

panies and products. More over Brand equity

as a separable asset -- when it is sold or inclu

of consumers' attachment to a brand.iations and beliefs the consumer has about the

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any holds. Thusry organized and

re pictures in the

hus if Mercedesll-organized and

ion or its implied

brand. Thus wessional.

terized by brand

f brand element.

contained in the

pportunities and

ognized? Is thiscan help.

ggestive of the

redient or a type

d element? Is itd names such as

s in the same or

nd equity across

orker received 8a day over 35.

w competitivelyme synonymousrademarks rights

The term means

an be defined as

ed on a balance

rand


32/34

Branding benefits buyers a

To Buyer:

1. Help buyers identify the2. Identify marketer3. Helps reduce the time ne4. Helps buyers evaluate

characteristics.

5. Helps reduce buyers per6. Buyer may derive a p

Mercedes.

To Seller:

1. Differentiate product2. Helps segment marke3. Brand identifies th

customers.4. Reduce price compar5. Brand helps firm intr

existing products...ha

and promotional cost6. Easier cooperation wi7. Facilitates promotion8. Helps foster brand lo9. Firms may be able to

Labeling: Its any written, ele

separate but associated label.

Objectives of the Packaging an

Packaging and package labeling

Physical protection Tamong other things, me

temperature, etc.

Barrier protection APermeation is a critical

absorbers to help extendalso maintained in some

for the intended shelf life

Containment or agglopackage for reasons of e

physical handling than

need containment.

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well as sellers

roduct that they like/dislike.

ded for purchase.quality of products especially if unable to

eived risk of purchase.

sychological reward from owning the brand

offering from competitorst by creating tailored images, i.e., Contact lense

companies products making repeat purc

isons

oduce a new product that carries the name of o

lf as much as using a new brand, lower co. de

. Example, BPL telephones.th intermediaries with well known brands

al efforts.

alty helping to stabilize market share.

charge a premium for the brand.

tronic, or graphic communications on the pa

d package labeling

have several objectives

e objects enclosed in the package may require

hanical shock, vibration, electrostatic dischar

barrier from oxygen, water vapor, dust, etc., i

actor in design. Some packages contain desic

shelf life. Modified atmospheres or controlledood packages. Keeping the contents clean, fres

is a primary function.

eration Small objects are typically groupeficiency. For example, a single box of 1000 pe

1000 single pencils. Liquids, powders, and g

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judge products

, i.e., Rolex or

s

notes of adv. marketing managment.pdf

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