Professional Documents
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Akshay
Why do people believe that Amazon has the best customer service?
Marketing
A management process responsible for identifying anticipating satisfying customer requirements profitably
Other Stimuli
Political Economic Social Technological
Purchase decision
Product Choice
Purchase Behaviour
Brand Choice Dealer Choice Purchase Amount Timing
Payment Terms
Basics
Consumer Focus Satisfying consumer needs (Maslows Model)
Basic (Level 1 and 2) Social Acceptance (Level 3) Social Envy (Level 4)
Want
Manifestation of a need Specific, man-made, e.g. juice, water
Desire
Strong expression of a want e.g. owning a Harley Davidson or a Ferrari
The Base 4
Mind your Ps
The basic value proposition Product Can be a product or service Consideration given by the consumer Includes strategies like offers, discounts
Price
Place
Availability at the right place, right time and in the right quantity Channels such as the internet, wholesalers or retailers
Communicating the value proposition and benefits offered by the product or service to the consumer Promoti Branding, PR, advertising, exhibitions, sales promotions on
Process
Process followed during delivery of service e.g. processes followed by McDonalds, process at ICICI bank branches
People
The people in the organization who interface with the consumer Perception of service quality directly depends on the customer service provided by the people e.g. banking, insurance, wealth management
Communication Channel
TV Radio Maximum penetration Print Internet Mobile Social networks (word of mouth)
ATL/BTL
Above The Line
Promotional activities carried out through conventional forms of mass media Television Radio Print Billboards
Consumer Behaviour
Different buying behaviour in different situations Marketing strategy based on consumer behaviour Impulsive
Picking (Lays, Bingo, Biscuits) Unplanned Low-involvement Products
Variety Seeking
Switching
Consumer Behaviour
Brand Loyal Purchasing
Levis Jeans Van Heusen shirts Raymond Suits
Problem Solving
Crocin, D-Cold, Burnol, Dettol
Purposive
B2B, industrial marketing, high involvement products
Demographic Segmentation
SEC - Socio-economic Class (Demographic) Urban SEC System (SEC A1, A2, B, C,D) Based on occupation and education of the head of the household Rural SEC (R1 to R4) System Based on the education of the head of the household and the type of housing
Targeting
Assess segment attractiveness Market growth, competition, channel attractiveness
Positioning
Conveying the message of differentiation Creating Points of Parity and Points of Difference E.g. Low price, high quality, low calorie, refined etc. Positioning of Nirma (low price), Surf Excel Matic (high-quality), Rolls Royce (premium), Harley Davidson (iconic American)
PESTLE Framework
Used in SWOT analysis for strategic planning, marketing planning, product development Political
Tax laws, trade tariffs, trade restrictions
Economic
Growth rate, interest rates, inflation
Social
Health consciousness, attitudes, acceptance
Dogs
Low growth, low market share Should be hived off or divested e.g. ITC Infotech
Rising Stars
Invest: High growth, high market share Hotels and Agri-business for ITC Group
Limitations
Linkage between market share and profitability is questionable A low market share product may actually be very profitable and vice versa
e.g. Dettol tried to promote its disinfectant as a medical antiseptic as well as a household cleaning product (market development) ITC Bingo chips (product development) Virgin Group (diversification)
A product has a limited life during which it poses different challenges these have to be managed
Statistics
HUL
4,000 stockists 6.3 million retailers Entire urban population + 250 million rural consumers
Marico
1,000 distributors 2,500 stockists 1.6 million retailers 18 million Indian households
Sales Objectives
Place of the Marketing Mix Target-driven (push strategy) Making the product available at the right place, right time and right quantity
Customizin g products Smaller stock & services keeping for the lesser units (SKU) privileged
Marketing Warfare
Defensive
Only the market leader should consider Best defensive strategy is the courage to attack yourself Blocking strong competitive moves E.g. Colgate Dental Cream Market leader consistently defensive positioning v/s Close-up, Pepsodent Built up defenses on all price points and varieties
Attack
Usually practiced by challenger(s) to the market leader Attack a weakness in the leaders position Car rental firm Avis attacked market leader Hertz with purely offensive strategies. Avis talked of being perfect because of the number two tag Burger King claims its burgers are bigger and taste better than McDonald's Have It Your Way Campaign attacks McDonald's inflexible consistent production line
Flanking
Practiced by the other smaller players Flanking move played in uncontested territory Tactical surprise is the key Pursuit (follow-up) is equally important Types
Geographical Segmented
Guerilla Usually implemented by firms who are smaller in market position/resource base than the firm they attack Find a segment of the market small enough to defend No matter how successful you become, never act like the leader Be prepared to leave at a moment's notice Babool, Chandrika, Medimix
Marketing Myopia
Be customer-oriented rather than product-oriented Hollywood Faced an increased competition from television Business of entertainment rather than moviemaking Cadburys Business of spreading joy (rather than chocolate making) Coca-Cola Business of quenching thirst Drops of Joy positioning
Some Tips
Read up on leading brands of the leading FMCGs Know more about the leading brands and the companies they belong to for various product categories like foods, hair care, personal care etc. Most interviews are form-based HUL interview involves questions on competing brands
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