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Principles of Marketing - MGT301 Power Point Slides Lecture 45
Principles of Marketing - MGT301 Power Point Slides Lecture 45
Lecture-45
Summary of Lecture-44
Review-1
Todays Topics
Review-2
Labeling
Idea Screening
Test Marketing
Idea Generation
Commercializat ion
Profits
Time
Growth
Maturity
Decline
Sales and Profits Over the Products Life From Inception to Demise
Price The amount of money charged for a product or service, or the sum of the values that consumers exchange for the benefits of having or using the product or service.
Internal Factors
Positioning Objectives
Pricing Decisions
Target Market
External Factors
Costs
Total Costs Sum of the Fixed and Variable Costs for a Given Level of Production
Variable Costs Fixed Costs (Overhead) Costs that dont vary with sales or production levels. Executive Salaries Rent Costs that do vary directly with the level of production.
Raw materials
Fixed Costs
Rent Depreciation Managers salaries Property taxes Insurance
Variable Costs
Raw materials Component parts Hourly wages Packaging & freight Sales commissions
Cost-based Pricing
Value-based Pricing Competition-based Pricing
1200
1000 800 600 400 Break-even point
Fixed cost
200
0 10 20 30 40 50
Market Skimming
Market Penetration
Price
Higher
Higher Quality
Lower
Premium Strategy
Good-Value Strategy
Lower
Overcharging Strategy
Economy Strategy
Price-Adjustment Strategies
Discount and Allowance Pricing Segmented Pricing Psychological Pricing Promotional Pricing Geographical Pricing International Pricing
Price Changes
No
Will Lower Price Negatively Affect Our Market Share & Profits?
No
Reduce Price
No Yes
Raise Perceived Quality Improve Quality & Increase Price Launch Low-Price Fighting Brand
Manufacturer
Customer Customer
Manufacturer
Manufacturer Customer Manufacturer Customer Manufacturer 20 Contacts
Manufacturer Customer
Manufacturer
Customer
Manufacturer
Manufacturer
Wholesaling Intermediary
Customer Customer
Manufacturer 9 Contacts
Producer
Consumer
Producer
Retailer
Consumer
Producer
Wholesaler
Retailer
Consumer
Producer
Agent/ Broker
Wholesaler
Retailer
Consumer
Inventory
Right Product
Right Time
Right Condition
Producer
Marketing activities
Intermediaries
Demand
Push Strategy
Producer
End users
Pull Strategy
Marketing Communications
Builds Relationships
Reminds
Persuades
Advertising
Any Paid Form of Nonpersonal Presentation by an Identified Sponsor. Personal Presentations by a Firms Sales Force. Short-term Incentives to Encourage Sales. Building Good Relations with Various Publics by Obtaining Favorable Unpaid Publicity. Direct Communications With Individuals to Obtain an Immediate Response.
Personal Selling
Sales Promotion
Public Relations
Direct Marketing
Advertising
A paid form of non-personal communication about an organization and/or its products to a target audience through a mass medium.
Personal selling
The direct presentation of a product to a prospective customer by a representative of the selling organization.
Sales promotion
Demand-stimulating activity designed to supplement advertising and facilitate personal selling.
Public relations
A planned communication effort by an organization to contribute to generally favorable attitudes and opinions toward an organization and its products.
Direct Marketing
Direct connections with carefully targeted individual consumers to obtain an immediate response and cultivate lasting customer relationship
Learning As Much As Possible About a Prospective Customer Before Making a Sales Call.
Knowing How to Meet the Buyer to Get the Relationship Off to a Good Start. Telling the Product Story to the Buyer, and Showing the Product Benefits.
Seeking Out, Clarifying, and Overcoming Customer Objections to Buying. Asking the Customer for the Order. Following Up After the Sale to Ensure Customer Satisfaction and Repeat Business.
Step 6. Closing
Step 7. Follow-Up
Training Salespeople
Compensating Salespeople
Supervising Salespeople
Evaluating Salespeople
Competitive Strategies
Competitive Positions
Global Village
Global Marketplace
Global Marketing
e-Marketing
Internet
Telephone
Postal Service
Radio
Television
The current issues and marketing can be divided into two major subjects:
Social responsibility
Ethics
DemographicEconomic Environment
Marketing Intermediaries
TechnologicalNatural Environment
Publics
PoliticalLegal Environment
Competitors
SocialCultural Environment
Feedback
Marketing Process
The process of :