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The set of controllable tactical marketing tools-product , price , place, and promotion –that the firm blends to produce the response it wants in the target market
strategic marketing planning
The process of developing and maintaining a strategic fit between the Organization’s goals and capabilities and its changing marketing opportunities . It involves defining a clear company mission setting supporting objectives, designing a sound business portfolio, and coordinating functional strategies .
Personal selling is a part of marketing mix which is most effective tool at later stages of the buying process, particularly in building up buyer preferences , conviction , and action. It has got three distinctive qualities such as personal confrontation , cultivation , and Response.
The process of measuring and evaluating the results of marketing strategies and plans and taking corrective actions to ensure that objectives are achieved.
Types of distribution channels.
A. The different distribution channels are Manufacturer , Dealers , Distributors , Wholesaler ,Retailer, Customer / consumers
A. The art and science of choosing target markets and building
profitable relationships with them. This involves getting , keeping , and growing customers through creating , delivering and communicating superior customer value.
A. The systematic design , collection , analysis and reporting of data relevant to a specific marketing situation facing an organization.
objective of packing.
A. The two objective of packing are:
(i)Designing and producing the container or protecting wrapper for a product. (ii) packages should perform many sales tasks such as –from attracting attention , to describe the product , to making the sale.
A. The set of all product lines and items that a particular seller offers for sale. A company’s product mix has four important dimension: width, length, depth and consistency.
A. Business through electronic media especially via internet is called on-line marketing. It is a part of direct marketing. There are two types of marketing channels that is commercial on-line services and the internet.
A. A group of products that are closely related because they function in a similar manner , are sold to the same customer groups , are marketed through the same types of outlets, or fall within given price ranges.
features of services marketing
• Intangibility ( services cannot be seen , tasted, felt , heard , or smelled before purchase.
• Inseparability ( services cannot be separated from their providers) • Variability ( quality of services depends on who provides them and when, where, and how) • Perishability ( services cannot be stored for later sale or use)
The way the product is defined by consumers on important attributesthe place the product occupies in consumer’s minds relative to competing products
A. Anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need is called product
A. A comprehensive, systematic , independent and periodic examination of a company’s environment ,objective, strategies , and activities to determine problem areas and opportunities and to recommend a plan of action to improve the company’s marketing performance
A. A fixed amount kept to spend on advertisement is called advertising budget
goods or services by an identified sponsor is called advertising. consumer behaviour A. For eg new products typically need large advertising budgets to build awareness and to persuade consumer’s to try the products. In contrast . Or It is an interactive marketing system that uses one or more advertising media to effect a measurable response and or transaction at any location. mature brands usually require lower budgets as a ratio to sales.5 which often depends on its stage in the product life cycle. advertising A. Direct communication with carefully targeted individual consumers to obtain an immediate Response. The buying behaviour of final consumers –individuals goods and services for personal consumption is called consumer behaviour. Any paid form of non personal presentation and promotion of ideas . direct marketing A. Branding .
intended to identify the goods and services of one seller or group of sellers and to differentiate them form those of competitors is called Branding tele-marketing A. sign . term . competitors and publics. competitors and publics. customer markets . which combine to make up the company’s value delivery network. Marketing success will require working closely with other company departments. marketing intermediaries. Telemarketing describes the use of telephone operators to attract new customers to contact existing customers to ascertain satisfaction levels.6 A. marketing intermediaries . suppliers . Different components of marketing environment A. or design . A name . The different components of marketing environment are as follows:Microenvironment & Macroenvironment Microenvironment : The actors close to the company that affect its ability to serve its customers-the company . customer relationship management A. customer markets. In case of routinely taking orders. . suppliers. symbol . it is called telesales. or to take orders. Managing detailed information about individual customers and carefully managing customer “touch points” in order to maximize customer loyalty is called customer relationship management. or a combination of these .
Marketing intermediaries: firms that help the company to promote . they include resellers . Thus. physical distribution firms . They provide the resources needed by the company to produce its goods and services. resellers and governments. including consumers. marketing service agencies . research and development . competitors :-The marketing concept states that to be successful a company must provide greater customer value ad satisfaction than its competitors do. Publics: Any group that has an actual or potential interest in or impact on an organization’s ability to achieve its objectives. sell . Suppliers: Suppliers form an important link in the company’s overall customer value delivery system. and financial intermediaries. supplier’s problem can seriously affect marketing. technological. Finally international markets consist of these buyers in other countries. Business markets buy goods and services for further processing or for use in their production process. economic. . political and cultural forces.7 The company: In designing marketing plans . marketing management takes other company groups into account-groups such as top management . finance . operations and accounting. whereas reseller markets buy goods and services to produce public services or transfer the goods and services to others who need them. All these interrelated groups form the internal environment. marketers must do more than simply adapt to the needs of target consumers. Consumer markets consist of individuals and households that buy goods and services for personal consumption. Macroenvironment:-The larger societal forces that affect the microenvironment – demographic . Customers: The company needs to study five types of customer markets closely. natural. and distribute its goods to final buyers. producers. purchasing.
furniture. age. clothes . Tastes in food .8 Demographic environment: The study of human population in terms of size. Cultural environment: Institutions and other forces that affect society’s basic values. creating new product and market opportunities Political environment: Laws. brand personality. economic situation . Buying is also shaped by the stage of the family life cycle-the stage through which families might pass as they mature over time. occupation and other statistics are the aspects which contribute to Demographic environment Economic environment:-It includes the factors that affect consumer buying power and spending patters. preferences. occupation. personality . density . perceptions. Traditionally family cycle . and pressure groups that influence and limit various organizations and individuals in a given society. Technological environment:-forces that create new technologies . Age and life-cycle stage: People change the goods and services they buy over their lifetimes. Natural environment:-Natural resources that are needed as inputs by marketers or that are affected by Marketing activities. and recreation are often age related. marketers often define their target markets in terms of life-cycle stage and develop appropriate products and marketing plans for each stage. personal determinants of consumer behaviour a. and behaviour. location. Government agencies . lifestyle. Personal determinants include Age and life cycle stage . race .
and interest rates. lawyers and doctors. fashion . accountants. nontraditional stages such as unmarried couples. recreation) and opinion ( about themselves. It profiles a person’s whole pattern of acting and interacting in the world. Today. Lifestyle: People coming from the same subculture. single marrying later in life. It involves measuring consumer’s major AIO dimensions. computer software companies will design different products for brand managers. social class. extended parents and others. social events ) . sports. A company can even specialize in making products needed by a given occupational group. family . social issues . interest ( food . Economic situation: A person’s economic situation will affect product choice. products ) Lifestyle captures something more than the person’s social class or personality . single parents . shopping . Marketers try to identify the occupational groups that have an above average interest in their products and services. whereas executives buy more business suits. hobbies .activities ( work . childless couples . however marketers are increasingly catering to a growing number of alternatives. Personality refers to the unique . Lifestyle is a person’s pattern of living as expressed in his or her psychographics. and re price their products closely. Personality and self-concept: Each person’s distinct personality influences his or her buying behavior. savings. business. same sex couples .9 stages include young singles and married couples with children. Marketers of income-sensitive goods watch trends in personal income. reposition. engineers. Occupation : A person’s occupation affects the goods and services bought. marketers can take steps to redesign . Blue collar workers tend to buy more rugged work clothes. and occupation may have quite different lifestyles. If economic indicators point to a recession. Thus.
autonomy . 1. Excitement ( daring . sociability. Ruggedness ( outdoorsy and tough ) marketing process A. As a first step. Sincerity ( down to earth . imaginative. This idea is that brands also have personalities . wholesome and cheerful ) 2. The following figure depicts the process of marketing. adaptability and aggressiveness. One researcher identified five brands personality traits. sophistication ( upper class and charming) 5.10 psychological characteristics that lead to relatively consistent and lasting responses to one’s own environment. defensiveness. Personality can be useful in analyzing consumer behaviour for certain product or brand choices. The goal is to build strong and profitable relationship with customers. intelligent and successful ) 4. Personality is usually described in terms of traits such as selfconfidence . spirited . Consumers stand in the center. Analyzing marketing opportunities Selecting target markets Developing the marketing mix Managing the marketing effort. A brand personality is the specific mix of human traits that may be attributed to a particular brand. and up to date) 3. Competence ( reliable . honest . through market segmentation ( Dividing a . and that consumers are likely to choose brands whose personalities match their own. dominance.
product life cycle is the course of a products sales and profits over its life time) . then divides it into smaller segments. the company engages in marketing analysis. price. place and promotion. planning( The marketing logic by which the business unit hopes to achieve its marketing objectives) .11 market into distinct groups of buyers who have distinct needs. and desirable place relative to competing products in the minds of great consumers ). Through these activities. and focuses on serving and satisfying these segments. characteristics. and positioning ( arranging for a product to occupy a clear. and promotion.that the firm blends to produce the response it wants in the target market) made up of factors under its control – product . distinctive . To find the best marketing mix and put it into action. or behaviour and who might require separate products or marketing mixes) . In other words. selects the most promising segments. It identifies the total market. the company decides which customers it will serve and how. Product life cycle and different stages of product life cycle or marketing strategies at each stage Meaning: The period during which a product lives in the market is termed as product life cycle .product . and control( the process of measuring and evaluating the results of marketing strategic and plans and taking corrective action to ensure that objectives are achieved). price . the company watches and adapts to the actors and forces in the marketing environment product life cycle stages A. targeting ( The process of evaluating each market segment’s attractiveness and selecting one or more segments to enter). Next . the company designs a marketing mix( the set of controllable tactical marketing tools.implementation(the process that turns marketing strategies and plans into marketing actions in order to accomplish strategic marketing objective).
Saturation 5. weakness may be revealed and they must be properly removed. 2. new competitors will enter the market. grows. Profits are nonexistent in this stage .12 Product life cycle should be preferably termed as product market life cycle . as its related to a given particular market. The increase in the competitors leads in an increase in the number of distribution outlets. Introduction: It starts when the product is introduced in a market. Profit increases during the growth stage . decay in its sales) Stages in the product life cycle :1. Products are brought continuously on a trial basis . . because of the heavy expenses of product introduction . The firm gives top pririority to sales volume and quality maintenance may have secondary preference. and sales jumps just to build reseller inventories . Prices remain where they are or fall only slightly. effective distribution and advertising are considered as a key features. Growth: It is a period during which the product is accepted by consumers and the traders. and the market will expand . Introduction 2.e. The product life cycle concept indicated that the product is boom or introduced . it is bound to enter its declining stage i. Growth 3. attains maturity and the point of saturation in that market and then sooner or later. In this stage . Much money is required to attract distributors and buy their inventories.. Maturity 4. Promotion spending is relatively high to inform consumers of the new product and get them to try it. Decline 1. During this period the sales revenue begins to grow but the rate of growth is very slow. Attracted by the opportunities of profits. They will introduce new product features .
and increased competition It may be driven out of the market by other new innovations. 4. thirst. perception . and therefore cost of marketing management deals with the product. Increasing marketing expenditure and falling prices will reduce profits. Most products are in the maturity stage of the cycle. . A need becomes a motive when it is aroused to a sufficient level of intensity. Overall marketing effectiveness becomes the key factor in this stage. the sales decline . Additional expenditure is involved in products modification and improvement advertising and sales promotion . psychological determinants of consumer behaviour A person’s buying choices are further influenced by four major psychological factors. Psychologist has developed theories of human motivation. Sales decline for many reasons. Decline:-Under the decline stage. At this stage price becomes the primary weapon of competition and it is necessary to reduce considerable expenditure on advertising and sales promotion .13 3. Two of the most popular – the theories of Sigmund freiud and Abraham maslow. Motivation. arising from states of tension such as hunger. arising from the need for recognition. and it poses strong challenges to marketing management.Cost control becomes the key to generate profits. A person has many needs at any given time. esteem or belonging. Maturity: This stage normally lasts longer than the previous stages. Some are biological. learning . Others are psychological.have quite different meanings for costumer analysis and marketing. During this stage keen competition brings pressure on prices.It may be gradually displaced by some new innovation. or discomfort. including technological advanced. shifts in consumer states. and beliefs and attitudes Motivation: A need that is sufficiently pressing to direct the person to seek satisfaction of the need.
each of us receives. love) Safety needs (security. Learning describes changes in an individual’s b behaviour arising form experience. and interpret information to form a meaningful picture of the world. and selective retention. People can form different perceptions of the same stimulus because of three perceptual processes: selective attention. Sight. selective distortion. People are exposed to a great amount of stimuli every day. and interprets this sensory information in an individual way. Learning theorists say that most . Learning: When people act. How the person acts is influenced by his or her own perception of the situation. protection) Physiological needs (hunger. All of us learn by the flow of information through our five senses. hearing. thirst) Perception: A motivated person is ready to act. However. smell.14 Maslow’s hierarchy of needs Self actualization needs ( self –development and realization) Esteem needs ( self esteem . touch and taste. organize. organizes. recognition. Perception is the process by which people select. they learn. status) Social needs (sense of belonging.
food and almost everything else. If some of the beliefs are wrong and prevent purchase. cues. in turn influence their buying behaviour. Learning occurs through the interplay of drives. where. Drive is a strong internal stimulus that calls for action. grows. Stimulus is object Cues are minor stimuli that determine when. and providing positive reinforcement. Marketers are interested in the beliefs that people formulate about specific products and services. product life cycle is the course of a products sales and profits over its life time) Product life cycle should be preferably termed as product market life cycle . marketing strategies at each stage of product life cycle Product life cycle and different stages of product life cycle or marketing strategies at each stage Meaning: The period during which a product lives in the market is termed as product life cycle . feelings and tendencies toward an object or idea. it is bound to enter its declining stage i.15 human behaviour is learned. because these beliefs make up product and brand images that affect buying behaviour. The product life cycle concept indicated that the product is boom or introduced . and how the person responds. People have attitudes regarding religion. the marketer will want to launch a campaign to correct them.e. stimuli. A practical significance of learning theory for marketers is that they can build up demand for a product by associating it with strong drives. clothes. responses . using motivating. as its related to a given particular market. music. A belief is a descriptive thought that a [person has about something.. of moving toward or away or away from them. cues . politics. Attitude put people into a frame of mind of liking or disliking things. In other words. and reinforcement. decay in its sales) . Attitude describes a person’s relatively consistent evaluations. Beliefs and Attitudes: Through doing and learning. These. attains maturity and the point of saturation in that market and then sooner or later. people acquire beliefs and attitudes.
Maturity 4. warranty . Saturation 5. Introduction stage: (a) Product strategy : In case of product . build awareness and interest in the mass market (e) Sales promotion: The company reduce ot take advantage of heavy consumers demand. Introduction 2. Decline Marketing strategies at each stage of Product life cycle:1. 2. . service . (d) Advertising strategy: The company build product awareness among an early adopters and dealers.16 Stages in the product life cycle :1. Growth stage:- (a) Product strategy : The company offer product extensions . (c) Distribution strategy: The company will build selective distribution with an intention to go for potential market. (e) Sales promotion: The company uses heavy sales promotion in this stage.. company will offer a basic product rather then extension of product in different areas. (b) Price strategy: The company here fixes high price during this stage because in order to promote the basic sale of a product therefore company uses cost-plus. Growth 3. (b) Price strategy: The company fixes the price in such a way to penetrates the market (c) Distribution strategy: The company build intensive distribution (d) Advertising strategy: The co.
(e) Sales promotion strategy: Here the sales promotion reduce to minimal level.. The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction. (d) Advertising strategy: The company reduce to the level needed to retain hard- core loyal. phase out weak items. Thus. retaining. many companies took their customers for granted.. build more intensive distribution (d) Advertising strategy : The company here stress brand differences and benefits. today’s companies are growing beyond designing strategies to attract new customers and create transactions with them.. facing an expanding economy and . Why the new emphasis on retaining and growing customers? In the past. Decline stage: (a) Product strategy: The co. customer relationship management A. (e) Sales promotion: The company increase to encourage brand switching. long term relationships with them. (b) Price strategy: The company fixes a cut price. Maturity stage: (a) Product strategy: the co.17 3. and growing profitable customers. diversify brand and models (b) Price strategy: The company fix the price to match or beat competitors (c) Distribution strategy: The co. (c) Distribution strategy :The company go selective phase out and unprofitable outlets. The new view is that marketing is the science and art of finding . They are using customer relationship management to retain current customers and build profitable . 4.
companies today face some new marketing realities. Changing demographics . and overcapacity in many industries. Companies are also realizing that losing a customer means losing more than a single sale. a company must constantly seek ways to deliver superior customer value and satisfaction. Satisfies customers are more likely to be loyal customers. The value of the entire stream of purchases that the customer would make over a lifetime of patronage is called customer lifetime value. the costs of attracting new consumers are rising. Customers often face a bewildering array of products and services form which to choose. It means losing the entire stream of purchases that the customer would make over a lifetime of patronage. Many companies are now fighting for shares of flat or fading markets.all of these factors mean that there are fewer customers to go around. To attract and keep customers. on average. and loyal customers are more likely to give the company a larger share of their business. . In fact. it costs 5 to 10 times as much to attract a new customer than to keep an existing one. However. Growing markets meant a plentiful supply of new customers. The key to building lasting customer relationship is to create superior customer value and satisfaction. Attracting and retaining customers can be a difficult task.18 rapidly growing markets. Thus . A customer buys form the firm that offers the highest customer perceived value which is the customer’s evaluation of the difference between all the benefits and all the costs of a marketing offer relative to these of competing offers. companies could proactive a” leaky bucket” approach to marketing. Companies could keep filling the marketing bucket with new customers without worrying about losing old customers through holes in the bottom of the bucket. more sophisticated competitors .
components of promotion mix A. and direct marketing tools that the company uses to pursue it’s advertising and marketing objective Advertising: It is an paid form of non personal presentation and promotion of ideas . Maintaing a separate department for customer relationship management is a must and should be handled cautiously. However. internet etc. television. Promotion mix is the specific mix of advertising . Nature of advertising:- . radio .. sales promotion. the relationship between customer satisfaction and loyalty varies greatly across industries and competitive situation. So. direct mail . Highly satisfied customers produce several benefits for the company.outdoor postures.19 Customer satisfaction is the extent to which a product’s perceived performance matches a buyer’s expectation. personal selling. Satisfied customers are less price sensitive. telephone. public relations. They talk favorably to others about the company and its products remain loyal for a longer period. It is the most visible form of all promotion tools which involves specific tools such as : newspapers. magazines . goods or services by an identified sponsor.
Sales promotion: sales promotion consists of short-term incentives to encourage purchase or sale of a product or service. print. contests . Negative impact: • Advertising also has some shortcomings. .20 Positive impact:Advertising can reach masses of geographically dispersed buyers at a low cost per exposure . and it enables the seller to repeat a message many times. offers strong incentives to purchase. advertising can be used to build a long term image for a product ( such as coca-cola ads) which is triggering sales. Nature of sales promotion:Positive impact: • Sales promotion attracts consumer attention . • It can be used to dramatize product offers and to boost sagging sales. It includes a wide assortment of tools such as coupons. • Eg. • On the other hand. Although it reaches many people quickly. consumers tend to view advertised products as more legitimate ( lawful) • Advertising is also very expressive because it allows the company to dramatize its products through the artful use of visuals. advertising is impersonal and cannot be as directly persuasive as can company’s sales people. Television advertising can reach huge audiences • Beyond its reach. cent-off deals . large scale advertising says something positive about the seller’s size. • As usual public nature . • Advertising can carry on only a one-way communication with the audience and they does not feel that it has to pay attention or response • Advertisements through TV require very large budgets. premiums and others. popularity and success. sound and coloour.
Negative impact: Sales promotion effects are often short lived. Price pack ( cents off deal) : reduced price that is marked by the producer directly on the label or package. Patronage reward: Cash or other award for the regular use of a certain company’s product Or service. games: promotional events that give consumers the chance to win . sweeptakes.21 • It invites and reward quick response ( advertising says “Buy our product” sales promotion says “Buy it now. Contests . Cash refund offer ( rebate) : Offer to refund part of the purchase price of a product to consumers who send a “Proof of purchase” to the manufacturer. Point of purchase (POP) promotion: Display and demonstration that takes place at the point of purchase or sale. The following are major tools of sales promotions methods Sample: A small amount of a product offered to consumers for trial. sales promotion is not effective as advertising or personal selling in building long-run brand preference. Premium: good offered either free or at low cost as an incentive to buy a product. given as a gift to consumers. Coupon: Certificates that gives buyers a saving when they purchase a specified product. However. Advertising speciality: Useful article imprinted with an advertiser’s name .
Public relations:.22 something. Personal selling : Personal selling consists of personal presentation by the firms sales force for the purpose of making sales and building customer relationship.such as cash . stories and events. Allowance: Promotional money paid by manufacturers to retailers in return for an agreement to feature the manufacturer’s products in some way.Building good relations with the company’s various publics by obtaining favorable publicity . and handling or heading off unfavorable rumours. trips or goods. Discount: A straight reduction in price on purchases during a stated period of time. building up a good corporate image. Public relation departments may perform any or all of the following functions:• Press relations or press agentry • Product publicity • Public affairs • Lobbying’ • Investor relations • Development Major public relations tools: • News • Speeches • Special events • Written materials • Audio visual materials • Corporate identity materials • Public service activities etc. .by luck or through extra effort.
It involves direct and personal contacts between the seller and the customer. . budget . Personal selling involves specific tools such as sales presentation . type of product etc.23 In other words personal selling is the process of assisting and persuading a prospective buyers to buy a product in a face to face situation. Personal selling process Prospecting and qualifying Pre approach Approach Presentation and demonstration Handling objections Closing Follow up The above four components are together known as promotion mix and it is not compulsory that every firm will market the product using all its depend up on the company strategy . plans . trade shows and incentive program.
According to Philip kotler: “Market segmentation is the sub-dividing of market into homogeneous subsections of customers where any sub-section may conceivably be selected as a market target to be reached with a distinct marketing mix” . Market segmentation can be defined as the process of dividing a market into distinct subsets of consumers with common needs or characteristics and selecting one or more segments to target with a distinct marketing mix.24 segmentation b.
5+ Young . supervisors.10. India . south America. muslim . British. hindu etc Asian . 12-19 . married. 65+ Male . suburban . china . 5000-20000. mountain. young. jewish. Generation Y North America . older.25 The major variables that might be used in segmenting consumer markets are as follows:A. 3-4. single. some high school etc Catholic . young. female 1-2 . black . 50-64. Psychographic & D.20000-30000 etc Professional &technical. 35-49 . middle east. west north central . older. Generation X . Geographic B. pretestant. Canada Mexico Pacific. 6-11 . Behavioral Geographic World region or country country region city or metro size Density Climate Demographic Age Gender Family size Family life-cycle Under 6 . new England Under 5000. operatives etc Grade school or less. no children Income Occupation Education Religion Race Generation Nationality Under 10. Demographic C. French etc Eg: North America . married with children. 20-34 .000-20000. married . no children. Hispanic . white Baby boomer . 20000-50000 et Urban . married with children. southern . rural Northern .000 . western America .
upper lowers . lower uppers . medium user . service . convenience . hostile The above table shows the segmentation of market according to different types of variable which is necessary before advertising or selling the product. heavy user. interested. strivers . authoritarian. economy . special occasion Quality . speed Nonuser . Ex-user . middle class . ambitious Regular occasions. informed . aware. absolute Unaware. . None . strugglers Compulsive . negative. upper middles. potential user etc Light user . positive. indifferent . desirous etc Enthusiastic . medium . working class . gregarious.26 Psychographic Social class Lower lowers. strong. upper uppers Life style Personality Behavioral Occasions Benefits User status User rates Loyalty status Readiness stage Attitude toward product Achievers.
27 marketing audit c. a company’s environment. the marketing department must practice constant marketing control. objectives. Marketing audit is done when deviation occurs at the time of marketing control which is the process of measuring and evaluating the results of marketing strategies and plans and taking corrective action to ensure that objectives are achieved as many surprises occur during the implementation of marketing plans. independent and periodic examination of . It then measures its performance in the marketplace and evaluates the causes of any differences between expected and actual A comprehensive. systematic. It involves four steps first management first sets specific marketing goals. strategies and activities to determine problem areas and opportunities and to recommend a plan of action to improve the company’s marketing performance matches a buyer’s expectations.
The marketing audit covers all major marketing areas of a business. To accommodate this rapid growth. marketing systems. and as current users have added new features such as toll-fee fax numbers.877. The audit is normally conducted by an objective and experienced outside party. We are all familiar with telephone marketing directed toward consumers. marketing organization. The findings may come as a surprise. tele-marketing A. Inbound toll – free 800 numbers are used to receive orders from television and print ads. or catalogs. marketing mix.ore and more companies have begun using them. Marketers use outbound telephone marketing to sell directly to consumers and business. Telephone marketing now accounts for more than38 % of all direct – marketing media expenditures and 36% of direct marketing sales. IT assess the marketing environment .866) have been . not a few trouble spots. Tele-marketing is nothing but using the telephone to sell directly to customers-has become the major direct-marketing communication tool. Residential use has also grown. The use of 800 numbers has taken off in recent years as . direct mail.and sometimes as a shock. This may require changing the action programs or even changing the goals. and marketing productivity and profitability. new toll free area codes (888. Management then decides which actions make sense and how and when to implement them. accounting for 58% of all telephone marketing sales. but B2B marketers also use telephone marketing extensively. marketing strategy .28 performance. Finally management takes corrective action to close the gaps between its goals and its performance.to management.
After the 800 area code was established in 1967. As a direct marketing Association executives notes “We want to target people who want to be targeted”. To expand the target market To add extra value to the product and develop brand franchise The develop favorable consumer experience with the product. Objectives of sales promotion A. Trade and sales force promotions supports the firm’s personal selling process. Sales promotion helps to reinforce the product’s position and build long-term customer relationship. In contrast.29 added. Most telemarketers support some action against random and poorly targeted telemarketing. who object to the almost daily “junk phone calls” that pull them away from the dinner table or fill the answering machine. Properly designed and targeted tele marketing provides many benefits. the recent explosion in unsolicited telephone marketing has annoyed many consumers. it took almost 30 years before its 8 million numbers were used up. . including purchasing convenience and increased product and Service information. Lawmakers around the country are responding with legislation ranging from banning unsolicited telemarketing calls during certain hours to letting households sign up for “Do not call” lists. 888 area code numbers established in 1996 were used up in only 2 years. The objectives of sales promotion are as follows: To increase short term sales or to help in building long –term market share. However. Sales promotion consists of short term incentives to encourage the purchase or sale of a product or service.
They include basic physical needs for food. and safety. wants . The following are the core concepts of marketing Needs. These needs were not created by marketers . clothing. . social needs for belonging and affection. and individual needs for knowledge and self-expression . warmth. transaction and relationship Markets Needs .30 Core concepts of marketing A social and managerial process whereby individuals and groups obtain what they need and want through creating and exchanging products and value with others. and demands Marketing offers . services and experience Value and satisfaction Exchange. products . wants and demands:Human needs are states of felt deprivation. they are a basic part of the human makeup.
More broadly . and ideas. Customers form expectations about the value of various marketing offers and buy accordingly. Customer satisfaction is a key influence on future buying behavior. Satisfied customers buy again and ell others about . Given their wants and resources. hotel . activities or benefits offered for sale that are essentially intangible and do not result in the ownership of anything.31 Wants are the form human needs take as they are shaped by culture and individual personality. wants become Demands. information. marketing offers include services. An American needs food but wants Big mac and soft drink. and marketer and competitor information and promises. places. services . services and experiences:Companies address needs by putting forth a value proposition . and home repair services. marketing gofers also include other entities.Products. people demand products with benefits that add up to the most value and satisfaction. In addition to tangible products . Customer satisfaction with a purchase depends on how well the product’s performance lives up to the customer’s expectations. tax preparation .and beans. organizations. Value and satisfaction:Consumers usually face a broad array of products and services that might satisfy a given need. A person in Mauritius needs food but wants a mango. The value proposition is fulfilled through a Marketing offer. a set of benefits that they promise to consumers to satisfy their needs.some combination of products. the opinions of friends . lentils . information. When backed by buying power. Marketing offers are not limited to physical products. Examples include banking . market to satisfy a need or want. Marketing offers. Customer value is the difference between the values the customer gains from owning and using a product and the costs of obtaining the product. Wants are shaped by one’s society and are described in terms of objects that will satisfy needs. airline . rice . How do buyers form their expectations? Customer expectations are based on past buying experiences. such as persons.
Dissatisfied customers often switch to competitors and disparage the product to others. Marketers work to understand the needs and wants of specific . A Transaction consists of a trade of values between two parties: In the broad sense. Marketing consists of actions taken to build and maintain desirable exchange relationship with target audiences involving a product . Transaction . Marketers want to build strong economic and social connections by promising the consistently delivering superior value. a transaction. and are willing to exchange these resources for what they want.32 their good experiences. Exchange . These buyers share a particular need or want that can be satisfied through exchange relationship. have resources to engage in exchange. The size of a market depends on the number of people who exhibit the need . the goal is to retain customers and grow their business with the company. the marketer tries to bring about a response to some marketing offer. A market is the set of actual and potential buyers of a product. is marketing ‘s unit of measurement . Markets:The concept of exchange and relationship lead to the concept of a market. interacting sets of markets that are linked through exchange processes. Marketers are keenly interested in markets. service . Whereas exchange is the core concepts of marketing. and Relationship:Marketing occurs when people decide to satisfy needs and wants through exchange. The response may be more than simply buying or trading products and services. Each nation’s economy and the whole world economy consists of complex. in turn. or other object. idea. Exchange is the act of obtaining a desired object from someone by offering something in return. Beyond simply attracting new customers and creating transactions.
Reach is a measure of the percentage of people in the target market who are exposed to the ad campaign during a given period of time.the qualitative value of a message exposure through a given medium.33 markets and to select the markets that they can serve best. In turn . The advertiser also must decide on the desired media impact. Frequency and impact:To select media. . frequency . and impact (2) Choosing among major media types (3) Selecting specific media vehicles (4) Deciding on media timing Deciding on Reach. Major steps in selecting advertising media The major steps in media selection are (1) Deciding on reach. the advertiser must decide what reach and frequency are needed to achieve advertising objectives. they develop products and services that create value and satisfaction for customers in these markets. The result is profitable long –term customer relationship.
with other media often neglected. fleeting exposure. So will nature of the product – eg: fashions are best advertised in color magazines and automobile performance us best demonstrated on television. combines sight. and impact the advertiser seeks. Medium News paper Advantages Flexibility . television and magazines have dominated in the media mixes of national advertisers. good local market coverage. and digital satellite television system.along audience High absolute costs. Media impact and cost must be reexamined regularly. cable television. timeliness. The media habits of target consumers will affect media choice – advertisers look for media that reach target consumers effectively. Choosing among major media types:The media planner has to know the reach . low cost per exposure. the more reach. for a long time .market coverage. high clutter. broad acceptability . however as network television cost saor and audiences shrink.34 Eg: for products that need to be demonstrated. frequency. the higher the advertising budget will have to be. frequency . poor reproduction quality. Recently. appealing to the senses No ad competition within Limitations Short life. and impact of each of the major media types. sound and motion. The same message in one magazine may be more believable than in another. many advertisers are looking for new ways to reach consumers. messages on television may have more impact than messages on radio because television uses sight and sound. Media planners consider many factors when making their media choices. small pass. less audience selectivity Relatively high cost per Television Direct mail . high believability Good mass. Three media benefiting greatly from the shift are outdoor advertising. In general.
fragmented audiences Long ad purchase lead time . interactive capabilities Exposure Audio only . Deciding on media timing:The advertiser must also decide how to schedule the advertising over the course of a year. immediately . Whereas newspaper ads may cost very little to produce. to oppose the seasonal pattern. . Most firms do some seasonal advertising. flashy television ads may cost million. demographically skewed audience. low attention .high cost . audience controls exposure Selecting specific media vehicles. Suppose sales of a product peak in December and drop in march. The firm cn vary its advertising to follow the seasonal pattern. Some do only seasonal advertising. creative limitations Outdoor Internet Small. low message competition. high quality reproduction Flexibility. or to be the same all year. no guarantee of position Little audience selectivity . high geographic and demographic selectivity.They must also consider the costs of producing ads for different media. Media planners must compute the cost per thousand persons reached by a vehicle . low cost High geographic and demographic selectivity . Finally the advertiser has to choose the pattern of the ads.35 Radio Magazines the same time Good local acceptance. credibility and prestige. high repeat exposure. good positional selectivity High selectivity . low cost.The media planner now must choose the best media e the vehicles – specific media within each general type. relatively low impact. Continuity means scheduling ads evenly within a given period. low cost.
greatest assortment . So. Setting channel objectives:Companies should state their marketing channel objectives in terms of targeted levels of customer service. Today. the company wants to minimize the total channel cost of meeting customer service requirements. . designing the marketing channel starts with finding out what target consumers want from the channel.36 Pulsing means scheduling ads unevenly over a given time period. The company and its channel members may not have the resources or skills needed to provide all the desired services. as customers are totally different in their needs – analyzing it in a proper way is necessary to design channel decision. In each segment. Providing the fastest delivery. Analyzing customer needs:Marketing channels are part of the overall customer value delivery network. Each channel member adds value for the customer. programs and hours of the day will yield the highest reach per ad dollar. Recent advances in technology have had a substantial impact on the media planning and buying functions. The company should decide which segments to serve and the best channels to use in each case. setting channel objectives. and most services may not be possible or practical. Such programs help advertisers to make better decisions about which mix of networks. for eg: computer software applications called media optimizers allow media planners to evaluate vast combination of television programs and prices. channel design decision Designing a channel system calls for analyzing consumer needs . identifying major channel alternatives and evaluating them. Thus.
its competitors.find distributors in the different regions or industries who will buy and carry the new line. . it should next identify its major channel alternatives in terms of types of intermediaries. and the responsibilities of each channel member. a company compares the likely sales. Industrial distributors:. a channel involving long-term commitments should be greatly superior on economic and control grounds. Manufacturer’s agency. Exclusive distribution : Giving a limited number of dealers the exclusive right to distribute the company’s products in their territories. Evaluating the major alternatives:Using economic criteria. and the environment . Companies must also determine the number of channel members to use at each level. to be considered . costs. Three strategies are available : Intensive distribution : Stocking the product in as many outlets as possible. and profitability of different channel alternatives and selects the best one among it.37 The company’s channel objectives are also influenced by the nature of the company. The following channel alternatives might emerge from management discussions: Company sales force: Assign outside salespeople to territories and have them contact all prospects in the area or develop separate company sales forces for different industries. of intermediaries who are willing to carry the company’s products. the number of intermediaries . Given them exclusive distribution . its products. Identifying major alternatives:When the company has defined its channel objectives .independent firms whose sales forces handle related products from many companies – in different regions or industries to sell the new test equipment. Selective distribution: The use of more than one. Thus.Hire manufacturer’s agent. its marketing intermediaries. product training and promotional support. but fewer than all . A firm should identify the types of channel members available to carry out its channel work. good margins .
thirst – rises to a level high enough to become a drive. A need can also be triggered by external stimuli. Buyer decision process consists of the following stages:Need recognition Information search Evaluation of alternatives Purchase decision Post purchase behaviour Need recognition:The buying process starts with need recognition – the buyer recognizes a problem or need.38 Buyer decision process. The marketer should research consumers to find out what kinds of needs or problems arise. A. what brought them about . and how they led the consumer to this particular product. . The need can be triggered by internal stimuli when one of the person’s normal needs – hunger .
using the product) the relative influence of these information sources varies with the product and the buyer. consumers do not use a simple and single evaluation process in all buying situation. if they know what evaluative processes go on. The consumer can obtain information from any of several sources.39 Information search:An interested consumer may or may not search for more information. marketers can take steps to influence the buyer’s decision. acquaintances) . ( family . How consumers go about evaluating purchase alternatives depends on the individual consumer and the specific buying situation. how the consumer processes information to arrive at brand choices. These include personal sources . packaging. salespeople . the consumer is likely to buy it then. Purchase decision:In the evaluation stage. Generally . displays) public sources ( mass media . If not. several evaluation processes are at work. neighbors . dealers . the consumer is likely to buy it then. the consumer may store the need in memory or undertake an information search related to the need. consumer rating organizations) and experiential sources ( handling . the consumer ranks brands and forms purchase intentions. commercial sources ( advertising . the consumer’s purchase decision will be to buy . examining . If the consumer’s drive is strong and a satisfying product is near at hand . Instead. Evaluation of alternatives:The marketer needs to know about alternative evaluation – that is . Marketers should study buyers to find out how they actually evaluate brand alternatives . Unfortunately . friends . If not.
consumers are satisfied with the benefits of the chosen brand and are glad to avoid the drawbacks of the brands not bought. By studying the overall buyer decision. expected price . A dissatisfied consumer responds differently. This suggests that sellers should make product claims that faithfully represent the product’s performance so that buyers are satisfied. Thus . but two factors can come between the purchase intention and the purchase decision. Almost all major purchases results in cognitive dissonance. Some sellers might even understate performance levels to boost consumer satisfaction with the product. on average. consumer feel at least some post purchase dissonance for every purchase. If customers know about the . and the second factor is unexpected situation factors . The larger the gap between expectations and performance. Clearly. The consumer may form a purchase intention based on factors such as expected income. After the purchase. Consumers feel uneasy about acquiring the drawbacks of the chosen brand and about losing the benefits of the brands not purchased. Whereas . preferences and even purchase intentions do not always result in actual purchase choice.40 the most preferred brand. Post purchase behaviour:The stage of the buyer decision process in which consumers take further action after purchase . a dissatisfied customer grips to 11 people. However. the greater the consumer’s dissatisfaction . However. and expected product benefits . The first factor is the attitudes of others. or discomfort caused by post purchase conflict. marketers may be able to find ways to help consumers move through it. every purchase involves compromise. Thus . bad word of mouth travels farther and faster than good word of mouth and can quickly damage consumer attitudes about a company and its products. a satisfied customer tells 3 people about a good product experience . based on their satisfaction or dissatisfaction. unexpected events may change the purchase intention.
Given the rapid changes in consumers taste .e. A firm can obtain new product in tow ways: one is through acquision I. companies must develop a steady stream of new products and services. technology.41 product but are not buying because they hold unfavorable attitudes towards it. product modifications and new brands through the firms own Research and development efforts. The other is through New product development in the company’s own research and development. New product introduction stages:• Idea generation • Idea screening • Concept development and testing • Marketing strategy • Business analysis • Product development . stages of new product introduction A. or a license to produce someone else’s product. by buying a whole company. and competition. a patent. Product improvement . The marketer must find ways to either change the product or change consumer perceptions. Meaning:New product development means the development of original products.
Concept development and testing:An attractive idea must be developed into a product concept. and of those only a couple will turn out to be unqualified success”. distributors and suppliers and others. The first idea reducing stage is idea screening . Thus. which helps to spot good ideas and drop poor one as soon as possible. so the company wants to go ahead only with the product ideas that will turn into profitable product. Product development costs rise greatly in later stages. The marketing strategy statement consists of three parts : The first part . and concept testing calls for testing new product concepts with a group target consumers to find out whether the concept have strong consumer appeal. the purpose of the succeeding stage is to reduce that number. only 100 will have enough commercial promise to merit a small scale experiment . It means the systematic search for new product ideas. Product concept is a detailed version of new product idea started in meaningful consumer term. According to one well known management consultant “ for every 1000 ideas . only 10 of those will warrant substantial financial commitment. Idea screening:The purpose of idea generation is to create a large number of ideas. So most of the companies typically generates many ideas in order to find a few good ones. the company gets various ideas by its internal and external sources such as customers . Marketing strategy and development:Designing an initial marketing strategy for a new product based on the product concept.42 • Test marketing & • Commercialization Idea generation:New product development starts with idea generation. competitors .
when introducing a new product requires a big investment . Product development:Developing the product concept into a physical product in order to ensure that the product idea can be turned into a workable product or if the product concept passes the business test. and marketing mix strategy. distribution. or when management is not sure of the product or marketing program. and marketing budget for the first year. Business analysis involves a review of the sales . and the sales. profit goals . However. Test marketing:Test marketing is the stage of new product development in which the product and marketing program are tested in more realistic market setting. market share . Business analysis:Once management has decided on its product concept and marketing strategy. Often products undergo rigorous tests to make sure that they perform safely and effectively. The R&D department will develop and test one or more physical versions of the product concept. When using . The third part of the marketing strategy statement describes the planned long –run sales . the product can move to the product development stage. a company may do a lot of test marketing. If they do.43 describes the target market. Test marketing gives the experience with marketing the product before going to the great expense of full introduction. it can evaluate the business attractiveness of the proposal. or that consumers will find value in them. it moves into product development. The amount of test marketing needed varies with each new product. and profit goals for the first few years The second part of the marketing strategy statement outlines the product’s planned price. and profit projections for a new product to find out whether they satisfy the company’s objectives. the planned product positioning . The company uses the sales and costs figures to analyze the new product’s financial attractiveness. costs.
the national market. ext. a region . The company launching a new product must first decide on introduction timing. the company must decide where to launch the new product – in a single location . Personal selling involves specific tools such as sales presentation .it will face high costs. trade shows and incentive program. controlled test market or simulated test market. process of personal selling A. If the company goes ahead with Commercialization.44 test marketing . Commercialization:Test marketing gives management the information needed to make a final decision about whether to launch the new product. In other words personal selling is the process of assisting and persuading a prospective buyers to buy a product in a face to face situation.introducing the new product into the market. consumer products companies usually choose one of three approachesstandard test markets. or the international market. Personal selling process Prospecting and qualifying Pre approach Approach Presentation and demonstration Handling objections . It involves direct and personal contacts between the seller and the customer. Personal selling consists of personal presentation by the firms sales force for the purpose of making sales and building customer relationship.
The sales person must often approach many prospects to get just a few sales. and bankers. non competing salespeople. and the follow-up remarks. Prospects can be qualified by looking at their financial ability. Approach:During the approach step. They can search for prospects in directories or on the web and track down leads using the telephone and direct mail. The opening lines should be positive to build goodwill from the beginning of the relationship.45 Closing Follow up Prospecting and Qualifying:The first step in the selling process is prospecting. acquaintances and others to learn about the company. special needs . Sales people also need to know how to qualify leads. The sales person should set call objectives .that is . Or they can drop in unannounced on various offices. salespeople need skill in finding their own. They can ask current customers for referrals. the salesperson should know how to meet and greet the buyer and get the relationship off to a good start. dealers . Approaching the right potential customers is crucial to selling success. or to make an immediate sale. to gather information. The salesperson can consult standard industry and online sources . volume of business. location and possibilities for growth. opening lines. This step involves the salesperson’s appearance . which may be to qualify the prospects . Pre approach:The step in the selling process in which the salesperson learns as much as possible about a prospective customer before making a sales call. how to identify the good ones and screen out the poor ones. Although the company supplies some leads . They can cultivate referral sources such as suppliers. This opening might be followed by some key questions to learn more about the customers needs or by .identifying qualified potential customers.
presenting customer benefits and showing how the product solves the customer’s problems. feel guilty about asking for the order . listening to the customer is crucial. comments. They may kacj confidence . Some salespeople do not get around to closing or do not handle it well. and online presentation technologies have replaced the flip chart. advanced presentation technologies allow for full multimedia presentations to only one or a few people. and objections are often unspoken . Right after closing. and questions.46 showing a display or sample to attract the buyer’s attention and curiosity. and turn the objections into reasons for buying. Closing:After handling the prospect’s objections. Handling objections:Customers almost always have objections during the presentation or when asked to place an order. including physical actions. the salesperson now tries to close the sale. The sales person then should . ask the buyer to clarify any objections . Salespeople should know how to recognize closing signals from the buyer. Audio-and video cassettes . seek out hidden objections . take objections as opportunities to provide more information. As in all stages of the selling process . Follow up:Follow-up is necessary if the salesperson wants to ensure customer satisfaction and repeat business. laptop computers with presentation software . CD’s. the salesperson should use a positive approach. Presentation and demonstration:During the presentation step of the selling process. Today . or fail to recognize the moment to close the sale. The problem-solver salesperson fits better with today’s marketing concept than does a hard-sell salesperson or the glad –handing extrovert. In handling objections. the salesperson tells the product “story” to the buyer. the salesperson should complete any details on delivery time. purchase terms and other matters. The problem can be either logical or psychological .
assure the buyer of the salesperson’s interest . ************************** . instruction and servicing. This visit would reveal any problems. and reduce any buyer concerns that might have arisen since the sale.47 schedule a follow –up call when the initial order is received. to make sure there is proper installation.
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