MarkeLlng ls Managlng proflLable cusLomer relaLlonshlps"

lulfllllng cusLomers wanLs and deslres ln order

Lo make a proflL"
1he process by whlch companles creaLe value for cusLomers
and bulld sLrong cusLomer relaLlonshlps ln order Lo capLure
value from cusLomers ln reLurn"
-ew ueflnlLlon of MarkeLlng (esL ln 2007)
MarkeLlng ls Lhe acLlvlLy seL of lnsLlLuLlons
and processes for creaLlng communlcaLlng
dellverlng and exchanglng offerlngs LhaL have
value for cusLomers cllenLs parLners and
socleLy aL large
(Amerlcan MarkeLlng AssoclaLlon)
Producf/
Service
Producer/DeIiverer
PefoiIer
Disfribufor
WhoIesoIer Cusfomer
PESEAPCH
Affifude
8ehovior
Chorocferisfics
Mecessify
/Desire
Exisfing Concepf
MAPIETIM0 OUTLIME
MAPIETIM0
AS A FIELD
OF STUDY
OPEPATIOMS
COMSUMEP
8EHAVIOUP
4Ps
Anticipating customer need
Developing and Selling Product
Concept
Creating/anticipating demand
Fulfilling demand
Naking and delivering a product to the
customer
MAPIETIM0 PPOCESS
Undersfond fhe morkefpIoce,
cusfomer needs ond wonfs
Design o Morkefing Sfrofegy
Consfrucf o morkefing
progrom
8uiId ProfifobIe reIofionships
wifh Cusfomers
Copfure voIue from cusfomers
in refurn
Morkefing
Monogemenf
Orienfofions
Producfion Concepf
Producf Concepf
The ideo fhof consumers wiII fovour
producfs fhof ore ovoiIobIe ond highIy
offordobIe
The ideo fhof consumers wiII fovour
producfs fhof offer fhe mosf in quoIify,
performonce ond feofures ond fhof
orgoni;ofions shouId fherefore devofe oII ifs
efforfs fo moke confinuous producf
improvemenfs
SeIIing Concepf
Morkefing Concepf
The ideo fhof consumers wiII nof buy enough
of fhe firm's producfs unIess if underfokes
o Iorge scoIe seIIing ond promofion efforf
The morkefing monogemenf concepf hoIds
fhof ochei8ving orgoni;ofionoI gooIs depends
on knowing fhe needs ond wonfs of forgef
morkefs ond deIivering fhe desired
sofisfocfions beffer fhon compefifors do.
Morkefing
Monogemenf
Orienfofions
Morkefing
Monogemenf
Orienfofions
A principIe of enIighfened morkefing fhof
hoIds fhof o compony shouId moke good
morkefing decisions by considering
consumers wonfs, fhe compony's
requiremenfs, consumer's Iong ferm
inferesfs ond sociefy's Iong run inferesfs
SociefoI Morkefing Concepf
9sychologlcal lacLors
Perception Perception Learning Learning
Beliefs &
Attitudes
Beliefs &
Attitudes
Motivation Motivation
Model o Consumer Behaior
Buying
Decision process
Problem recognition
nformation search
Evaluation of
alternatives
Purchase decision
Postpurchase
behavior
9er
s9imuIi
Economic
Technological
Political
Cultural
Consumer
PsycoIogy
Motivation
Perception
Learning
Memory
Purc,se Decision
Product choice
Brand choice
Dealer choice
Purchase timing
Purchase amount
M,rke9ing
s9imuIi
Product
Price
Place
Promotion
Consumer
c,r,c9eris9ics
Cultural
Social
Personal
Psychological
MEED PECO0MITIOM
IMFOPMATIOM SEAPCH
PUPCHASE DECISIOM
POSTPUPCHASE 8EHVIOP
EVALUATIOM OF ALTEPMATIVES
8UYEP
DECISIOM
PPOCESS
$9eps Be9een Lalua9ion o Al9erna9ies and a
Purchase Decision
;,Iu,9ion ;,Iu,9ion
of of
,I9ern,9i;es ,I9ern,9i;es
Purc,se
decision
Un,n9icip,9ed
si9u,9ion,I
f,c9ors
A99i9ude
of o9ers
Purc,se
in9en9ion
MA8kL1
l-1LLLlCL-L
-DML8
8LPAvlD8
ueclslon
PeurlsLlcs and
8lases
8ules of Lhumb or menLal shorLcuLs ln
Lhe declslon process
AvallablllLy PeurlsLlc onsumers base
Lhelr predlcLlons on Lhe qulckness and
ease wlLh whlch a parLlcular example of
an ouLcome comes Lo mlnds
MA8kL1
l-1LLLlCL-L
-DML8
8LPAvlD8
ueclslon
PeurlsLlcs and
8lases
8epresenLaLlveness PeurlsLlc
onsumers base Lhelr predlcLlons on
how represenLaLlve or slmllar Lhe
ouLcome ls Lo oLher examples
Anchorlng and Ad[usLmenL PeurlsLlc
onsumers arrlve aL an lnlLlal [udgmenL
and Lhem make ad[usLmenLs of LhaL flrsL
lmpresslon based on addlLlonal
lnformaLlon
MA8kL1
l-1LLLlCL-L
-DML8
8LPAvlD8
MenLal
AccounLlng
1he manner by whlch consumers code
caLegorlze and evaluaLe flnanclal ouLcomes
of cholces
ltospect 1beoty
coosomets ftome Jeclsloo oltetootlves lo
tetms of qolos ooJ losses occotJloq to o
voloe fooctloo coosomets ote qeoetolly loss
ovetse 1bey teoJ to ovetwelqbt vety low
ptobobllltles ooJ ooJetwelqbt vety blqb
ptobobllltles
MA8kL1
l-1LLLlCL-L
-DML8
8LPAvlD8
MenLal
AccounLlng
1he manner by whlch consumers code
caLegorlze and evaluaLe flnanclal ouLcomes
of cholces
ltospect 1beoty
coosomets ftome Jeclsloo oltetootlves lo
tetms of qolos ooJ losses occotJloq to o
voloe fooctloo coosomets ote qeoetolly loss
ovetse 1bey teoJ to ovetwelqbt vety low
ptobobllltles ooJ ooJetwelqbt vety blqb
ptobobllltles
MA8kL1
l-1LLLlCL-L
-DML8
8LPAvlD8
MenLal
AccounLlng
onsumers Lend Lo segregaLe galns
onsumers Lend Lo lnLegraLe losses
onsumers Lend Lo lnLegraLe smaller losses
wlLh larger galns ancellaLlon 9rlnclple"
onsumers Lend Lo segregaLe small galns
from large losses llverllnlng 9rlnclple"
MA8kL1
l-1LLLlCL-L
-DML8
8LPAvlD8
,opploq tbe
costomets
coosomptloo
5ystem/costomet
Actlvlty
cycle/costomet
5ceootlo
Pow are consumers Lhlnklng?
lnLrospecLlve meLhod
8eLrospecLlve meLhod
9rospecLlve meLhod
9rescrlpLlve meLhod
MA8kL1
l-1LLLlCL-L
-DML8
8LPAvlD8
loses lo ueclsloo
,okloq
9lugglngln
lrame 8llndness
Lack of frame conLrol
verconfldence ln [udgmenL
horLslghLed shorLcuLs
hooLlng form Lhe hlp
Croup fallure
9g 202 MarkeLlng ManagemenL !ay 8usso and kevln choemaker
MA8kL1
l-1LLLlCL-L
-DML8
8LPAvlD8
loses lo ueclsloo
,okloq by
,otketloq
,oooqets
loollng yourself abouL feedback
-oL keeplng Lrack
lallure Lo audlL your declslon process
rob|em kecogn|t|on rob|em kecogn|t|on
Genera| Need Descr|pt|on Genera| Need Descr|pt|on
roduct Spec|f|cat|on roduct Spec|f|cat|on
Supp||er Search Supp||er Search
roposa| So||c|tat|on roposa| So||c|tat|on
Supp||er Se|ect|on Supp||er Se|ect|on
Crder kout|ne Spec|f|cat|on Crder kout|ne Spec|f|cat|on
erformance kev|ew erformance kev|ew
ost ost
urchase urchase
urchase urchase
Info Info
Search] Search]
Lva| Lva|
Need Need
kecogn|t|on kecogn|t|on
Par9icipan9s in 9he Business Buying
Process
atekeepers
nitiators
Buyers
nfluencers
Deciders
Users
Approvers
lour 1ypes of 8uylng 8ehavlor
omp|ex
8uy|ng
8ehav|or
D|ssonance
keduc|ng 8uy|ng
8ehav|or
Var|ety
Seek|ng
8ehav|or
nab|tua|
8uy|ng
8ehav|or
S|gn|f|cant
d|fferences
between
brands
Iew
d|fferences
between
brands
n|gh
Invo|vement
Low
Invo|vement
Produc9
PI,ce
Promo9ion
Price
feofures, quoIify, service, supporf,
producf Iine efc.)
chonneI of disfribufion,
excIusive vs. infensive, efc.)
odverfising, soIes force,
brochures, coupons, efc.)
Iisf price, discounf, deoIs, bofh end-user
ond chonneI)
The
Morkefing
Mix
P,ck,ging (Pysic,I ;idence)
Posi9ioning (Process)
PeopIe
The
Morkefing
Mix
Produc9
PI,ce
Promo9ion
Price
feofures, quoIify, service, supporf,
producf Iine efc.)
chonneI of disfribufion,
excIusive vs. infensive, efc.)
odverfising, soIes force,
brochures, coupons, efc.)
Iisf price, discounf, deoIs, bofh end-user
ond chonneI)
The
Morkefing
Mix
MA8kL1
l-1LLLlCL-L
luL-1ll?l-C
MA8kL1
LCML-1
A-u 1A8CL1
9references egmenLs
Pomogeneous preferences
ulffused preferences
lusLered preferences
LCML-1
MA8kL1l-C
MA8kL1
l-1LLLlCL-L
luL-1ll?l-C
MA8kL1
LCML-1
A-u 1A8CL1
usLomers wlLh dlsLlncL seL of needs
9ay premlum Lo a flrm LhaL besL saLlsfles
Lhelr needs
Dnllkely Lo aLLracL oLher compeLlLors
-lcher galns cerLaln economles Lhrough
speclallzaLlon
-lche has slze proflL and growLh poLenLlal
lalrly small and aLLracL few compeLlLors
-lPL
MA8kL1l-C
MA8kL1
l-1LLLlCL-L
luL-1ll?l-C
MA8kL1
LCML-1
A-u 1A8CL1
LAL MA8kL1l-C
D1ML8lZA1l-
usLomlzed MarkeLlng
neLoone MarkeLlng
MA8kL1
l-1LLLlCL-L
luL-1ll?l-C
MA8kL1
LCML-1
A-u 1A8CL1
CLC8A9Pl
vA8lA8LL
Ceographlc reglon
lLy slze
uenslLy
llmaLe
MA8kL1
l-1LLLlCL-L
luL-1ll?l-C
MA8kL1
LCML-1
A-u 1A8CL1
uLMC8A9Pl
vA8lA8LL
uemographlc age
lamlly slze
lamlly Llfe cycle
Cender
lncome
ccupaLlon
LducaLlon
8ellglon
MA8kL1
l-1LLLlCL-L
luL-1ll?l-C
MA8kL1
LCML-1
A-u 1A8CL1
uLMC8A9Pl
vA8lA8LL
8ace
CeneraLlon
-aLlonallLy
oclal lass
MA8kL1
l-1LLLlCL-L
luL-1ll?l-C
MA8kL1
LCML-1
A-u 1A8CL1
uLMC8A9Pl
vA8lA8LL
8ace
CeneraLlon
-aLlonallLy
oclal lass
MA8kL1
l-1LLLlCL-L
luL-1ll?l-C
MA8kL1
LCML-1
A-u 1A8CL1
98lZM (9oLenLlal 8aLlng lndex by Zlp MarkeLs)
omblnes Ceographlc and 9sychographlc
segmenLaLlon varlables LogeLher
Lxamples
8lue 8lood LsLaLes Wlnner's lrcle PomeLown
8eLlred LaLlno Amerlca hoLguns and 9lckups
8lack ounLry lolk ?oung ulgeraLl 8elLway
8oomers 1he osmopollLans ld MlllLowns
MA8kL1
l-1LLLlCL-L
luL-1ll?l-C
MA8kL1
LCML-1
A-u 1A8CL1
9?PC8A9Pl
vA8lA8LL
9sychographlc LlfesLyle
(ulLure orlenLed porLs orlenLed uLdoor
orlenLed)
9ersonallLy
(ompulslve Cregarlous AuLhorlLarlan
AmblLlous)
MA8kL1
l-1LLLlCL-L
luL-1ll?l-C
MA8kL1
LCML-1
A-u 1A8CL1
9?PC8A9Pl
vA8lA8LL
vAL lramework
MA8kL1
l-1LLLlCL-L
luL-1ll?l-C
MA8kL1
LCML-1
A-u 1A8CL1
9?PC8A9Pl
vA8lA8LL
lnnovaLors
urvlvors
1hlnkers
8ellevers
Achlevers
Lrlvers
Lxperlencers
Makers
ldeals AchlevemenL elfLxpresslon
9rlmary
MoLlvaLlon
Plgh 8esource
Plgh lnnovaLlon
Low 8esource
Low lnnovaLlon
MA8kL1
l-1LLLlCL-L
luL-1ll?l-C
MA8kL1
LCML-1
A-u 1A8CL1
9?PC8A9Pl
vA8lA8LL
Croups wlLh Plgher 8esources
lnnovaLors uccessful ophlsLlcaLed AcLlve
1ake harge" people wlLh hlgh self esLeem
9urchases ofLen reflecL culLlvaLed LasLes for
relaLlvely upscale nlcheorlenLed producLs and
servlces
1hlnkers MaLure saLlsfled and reflecLlve people
who are moLlvaLed by ldeals and value order
knowledge and responslblllLy lavour durablllLy
funcLlonallLy and value ln producLs
MA8kL1
l-1LLLlCL-L
luL-1ll?l-C
MA8kL1
LCML-1
A-u 1A8CL1
9?PC8A9Pl
vA8lA8LL
Croups wlLh Plgher 8esources
Achlevers successful goalorlenLed people who
focus on career and famlly lavour premlum
producLs LhaL demonsLraLe success Lo Lhelr peers
Lxperlencers ?oung enLhuslasLlc lmpulslve
people who seek varleLy and exclLemenL pend
comparaLlvely hlgh proporLlon of Lhelr lncome on
fashlon enLerLalnmenL and soclallzlng
MA8kL1
l-1LLLlCL-L
luL-1ll?l-C
MA8kL1
LCML-1
A-u 1A8CL1
9?PC8A9Pl
vA8lA8LL
Croups wlLh Lower 8esources
8ellevers onservaLlve convenLlonal and
LradlLlonal people wlLh concreLe bellefs lavour
famlllar producLs and are loyal Lo esLabllshed
brands
Lrlvers 1rendy and funlovlng people who are
resource consLralned lavour sLyllsh producLs LhaL
emulaLe Lhe purchases of Lhose wlLh greaLer
maLerlal wealLh
MA8kL1
l-1LLLlCL-L
luL-1ll?l-C
MA8kL1
LCML-1
A-u 1A8CL1
9?PC8A9Pl
vA8lA8LL
Croups wlLh Lower 8esources
Makers 9racLlcal downLoearLh selfsufflclenL
people who llke Lo work wlLh Lhelr hands lavour
producLs wlLh a pracLlcal or funcLlonal purpose
urvlvors Llderly passlve people who are
concerned abouL change Loyal Lo Lhelr favourlLe
brands
MA8kL1
l-1LLLlCL-L
luL-1ll?l-C
MA8kL1
LCML-1
A-u 1A8CL1
8LPAvl8AL
vA8lA8LL
8ehavloral ccaslons
(8egular ccaslon peclal ccaslon)
8eneflLs
(CuallLy ervlce Lconomy peed)
Dser LaLus
(-onuser Lxuser 9oLenLlal Dser llrsL Llme
user 8egular Dser)
Dsage 8aLe
(LlghL user Medlum user Peavy user)
MA8kL1
l-1LLLlCL-L
luL-1ll?l-C
MA8kL1
LCML-1
A-u 1A8CL1
8LPAvl8AL
vA8lA8LL
LoyalLy LaLus
(-one Medlum Lrong AbsoluLe)
8eadlness Lage
(Dnaware Aware lnformed lnLeresLed
ueslrous lnLendlng Lo buy)
ALLlLude Loward producL
(LnLhuslasLlc 9oslLlve lndlfferenL -egaLlve
PosLlle)
MA8kL1
l-1LLLlCL-L
luL-1ll?l-C
MA8kL1
LCML-1
A-u 1A8CL1
8LPAvl8AL
vA8lA8LL
8ehavloral egmenLaLlon 8reakdown
(9g 237 MM )
MA8kL1
l-1LLLlCL-L
luL-1ll?l-C
MA8kL1
LCML-1
A-u 1A8CL1
8LPAvl8AL
vA8lA8LL
1he onverslon Model
Measures Lhe sLrengLh of 9sychologlcal
ommlLmenL beLween brands and
consumers and Lhelr wllllngness and
openness Lo change
MA8kL1
l-1LLLlCL-L
luL-1ll?l-C
MA8kL1
LCML-1
A-u 1A8CL1
-vL8l-
MuLL Dsers
MMl11ML-1
LW
PlCP
-vL81l8LL
PALLW
AvL8ACL
L-18L-PLu
MA8kL1
l-1LLLlCL-L
luL-1ll?l-C
MA8kL1
LCML-1
A-u 1A8CL1
-vL8l-
MuLL
-onusers
8ALA-L l
ul9l1l-
LW
PlCP
AvAlLA8LL
AM8lvALL-1
WLAkL?
D-AvAlLA8LL
18-CL?
D-AvAlLA8LL
MA8kL1
l-1LLLlCL-L
luL-1ll?l-C
MA8kL1
LCML-1
A-u 1A8CL1
8Dl-L MA8kL1
LCML-1A1l-
uemoqtopblc
W oJostty
W compooy 5lze
W locotloo
Opetotloq votlobles
W 1ecbooloqy
W uset ot ooo oset stotos
W costomet copobllltles
lotcbosloq Apptoocbes
W lotcbosloq fooctloo
otqoolzotloo
W lowet 5ttoctote
W Notote of exlstloq
telotloosblps
W Ceoetol lotcbose lollcy
W lotcbosloq ctltetlo
5ltootloool loctots
W utqeocy
W 5peclflc Appllcotloo
W 5lze ot otJet
letsoool cbotoctetlstlcs
W oyet5ellet slmllotlty
W AttltoJes towotJs tlsk
W loyolty
MA8kL1
l-1LLLlCL-L
luL-1ll?l-C
MA8kL1
LCML-1
A-u 1A8CL1
1L9 l-
LCML-1A1l-
98L
-eeds 8ased egmenLaLlon
2 egmenL ldenLlflcaLlon
3 egmenL ALLracLlveness
4 egmenL 9roflLablllLy
3 egmenL 9oslLlonlng value 9roposlLlon"
6 egmenL Acld 1esL" egmenL Lory 8oard"
7 MarkeLlngMlx LraLegy
88A-u LCDl1?
LxecuLlve ummary
1able of onLenLs
lLuaLlon Analysls
MarkeLlng LraLegy
llnanclal 9ro[ecLlons
lmplemenLaLlon onLrols
88A-u LCDl1?
88A-ul-C
8eneflLs of 8randlng Lo ompanles
W lmpllfy 9roducL Pandllng or Lraclng
W rganlze lnvenLory and accounLlng records
W Legal 9roLecLlon (lnLellecLual 9roperLy)
W 8rand -ame 8eglsLered 1rademarks
W ManufacLurlng 9rocess 9aLenLs
W 9ackaglng opyrlghLs and deslgns
W 8rand LoyalLy
W 9redlcLablllLy of uemand
W LnLry barrlers for compeLlLlon
88A-ul-C
8eneflLs of 8randlng MarkeLlng AdvanLages
W lmproved 9ercepLlons of 9roducL 9erformance
W CreaLer LoyalLy
W Less vulnerablllLy Lo ompeLlLlve MarkeLlng AcLlons
W Larger Marglns
W More lnelasLlc onsumer 8esponse Lo 9rlce
lncreases
W More LlasLlc onsumer 8esponse Lo 9rlce uecreases
88A-ul-C
8eneflLs of 8randlng MarkeLlng AdvanLages
W CreaLer 1rade ooperaLlon and upporL
W lncreased MarkeLlng ommunlcaLlon LffecLlveness
W 9osslble Llcenslng pporLunlLles
W AddlLlonal 8rand LxLenslon pporLunlLles
88A-ul-C
8eneflLs of 8randlng MarkeLlng AdvanLages
W CreaLer 1rade ooperaLlon and upporL
W lncreased MarkeLlng ommunlcaLlon LffecLlveness
W 9osslble Llcenslng pporLunlLles
W AddlLlonal 8rand LxLenslon pporLunlLles
Producf
Core
enefit
ActuuI
Product
8rond
Mome
QuoIify
LeveI
Pockoging
Feofures
Design
Augmented
Product
DeIivery &
Credif
InsfoIIofion
Worronfy
Affer
soIes
service
Producf
PPODUCT LIME
A group of producfs fhof ore cIoseIy reIofed becouse
fhey funcfion in o simiIor monner, ore soId fo fhe some
cusfomer groups, ore morkefed fhrough fhe some
fypes of oufIefs or foII wifhin given price ronges
PPODUCT MIX
The sef of oII producf Iines ond ifems fhof o porficuIor
seIIer offers for soIe
Producf
8PAMD EQUITY
The posifive differenfioI effecf fhof knowing fhe
brond nome hos on cusfomer response fo fhe producf
or service
8PAMD POSITIOMIM0
- Producf Affribufes
- 8enefifs
- 8eIiefs ond VoIues
Producf
8PAMD MAME SELECTIOM
- SeIecfion
- Profecfion
8PAMD SPOMSOPSHIP
- Monufocfurer's brond
- Privofe brond
- Licensing
- Co-bronding
Producf
8PAMD DEVELOPMEMT
- Line Exfension
- 8rond Exfension
- MuIfibronds
- Mew bronds
Producf
Line Exfension: Differenf versions of fhe some producf
8rond Exfension: Mew producfs ore odded under fhe
nome of on exisfing brond
MuIfibronds: Differenf bronds of fhe some producf.
Price
PRICINS APPROACHES
Cost based Pricing
Cost Plus pricing - Add standard profit
(markup) to the cost of the product
BreakEven Analysis and Target Profit Pricing
valuebased pricing
Setting price based on buyer's perceptions of
value rather than on the seller's cost
Price
NEW-PRODUCT PRICINS STRATESIES
Narket Skimming Pricing
Selling a high price for a new product to skim
maximum revenues layer by layer from the
segments willing to pay the high price
Fewer but more profitable sales
NarketPenetration Pricing
Setting a low price for a new product in order to
attract large number of buyers and a large
market share
4 P's of Morkefing
Price
PRODUCT MIX PRICINS STRATESIES
Product Line Pricing
Setting the price steps between various
products in a product line based on cost
differences between the products, customer
evaluations of different features and
competitor's prices
OptionalProduct Pricing
The pricing of optional or accessory products
along with a main product
Price
PRODUCT MIX PRICINS STRATESIES
Captive Product Pricing
Setting a price for products that must be used
along with a main product e.g blades for razors,
cartridges for printers
ByProduct Pricing
Setting a price for by products in order to make
the main product's price more competitive
Price
PRICE ADJUSTMENT STRATESIES
Discount
Allowance
Segmented Pricing
Psychological
Ceographical
Promotional
!nternational
PIoce
Distribution or Supply Chain Nanagement
Narketing Channel or Distribution Channel:
Producer
Consumer
Producer
PefoiIer
Consumer Consumer
PefoiIer
WhoIesoIer
Producer
Direcf
Morkefing
ChonneI
InDirecf
Morkefing
ChonneI
InDirecf
Morkefing
ChonneI
Promofion
% AdverLlslng
% ales 9romoLlon
% 9ersonal elllng
% 9ubllc 8elaLlons
% ulrecL MarkeLlng
Cusfomer
VoIue ond
LoyoIfy
A deeply held commlLmenL Lo rebuy or repaLronlze a preferred producL
or servlce ln Lhe fuLure desplLe slLuaLlonal lnfluences and markeLlng
efforLs havlng Lhe poLenLlal Lo cause swlLchlng behavlor" llver
LoyalLy
value 9roposlLlon
onslsLs of Lhe whole clusLer of beneflLs a company promlses Lo dellver Lo
lLs cusLomers
Cusfomer
Sofisfocfi
on
LlemenLs of company performance
nLlme LransporLaLlon
ompleLeness of order
8epurchase lnLenLlon
9roducL CuallLy
usLomer ervlce
Measurlng aLlsfacLlon
18A1LC?
l8MDLA1l-
LLvLL
% 9roducL / 8rand Level
% 8D Level
% orporaLe Level
A-AL?l 1L
% 8C MaLrlx
% W1 Analysls / 1W Analysls
% usLomer MaLrlx
% usLomer 9roflLablllLy Analysls
% lnLenslve CrowLh LraLegles
MA8kL1l-C
MA-ACLML-1
1Ak
% ueveloplng MarkeLlng LraLegles and
9lans
% apLurlng MarkeLlng lnslghLs
% onnecLlng wlLh usLomers
% 8ulldlng Lrong 8rands
% haplng Lhe MarkeL fferlngs
% uellverlng value
% ommunlcaLlng value
% reaLlng LongLerm CrowLh
MA8kL1
l-1LLLlCL-L
MarkeL cannlng
% lnLernal
% LxLernal
MA8kL1
l-1LLLlCL-L
% lnLernal 8eporLs ales 9rlces
lnvenLorles
% rderLo9aymenL ycle
% ales lorce
% uaLa Warehouses uaLa Mlnlng
lnLernal
MA8kL1
l-1LLLlCL-L
MarkeL cannlng
MA8kL1
l-1LLLlCL-L
% ales lorce Lo spoL and reporL new
developmenL
% ulsLrlbuLors 8eLallers and oLher
lnLermedlarles
% LxLernal -eLworklng compeLlLor producLs
Lrade shows compeLlLor reporLs
% Advlsory 9anel
% CovernmenL daLa resources
% lnformaLlon uppllers CarLner A -lelsen
8lz360
% usLomer feed back
LxLernal
MA8kL1
l-1LLLlCL-L
MarkeL cannlng
MA8kL1
l-1LLLlCL-L
% 1rend A dlrecLlon or sequence of evenLs
LhaL has some momenLum and durablllLy
% lad A sequence of evenLs LhaL ls
unpredlcLable shorL llved and wlLhouL soclal
pollLlcal and economlc slgnlflcance
% Mega Lrends large soclal economlc
pollLlcal and Lechnologlcal changes LhaL are
slow Lo form buL lnfluence us for someLlme
-eeds
and
1rends
MA8kL1
l-1LLLlCL-L
MarkeL cannlng
MA8kL1
l-1LLLlCL-L
% 9ollLlcal Legal
% Lconomlc
% 1echnologlcal
% oclal ulLural
Ma[or
lacLors
1hese facLors have an lmpacL on all envlronmenLs
MA8kL1
l-1LLLlCL-L
MarkeL cannlng
MA8kL1
l-1LLLlCL-L
% 9ollLlcal Legal
% Lconomlc
% 1echnologlcal
% oclal ulLural
Ma[or
lacLors
MA8kL1
l-1LLLlCL-L
MarkeL cannlng
MA8kL1
l-1LLLlCL-L
% uemographlc LnvlronmenL
% 9opulaLlon growLh Age Mlx Pousehold
paLLerns
% Lconomlc LnvlronmenL
% Ceographlcal shlfLs ln populaLlon
lncome redlsLrlbuLlon redlL culLure
% oclal ulLural LnvlronmenL
AppllcaLlon of
lacLors on
LnvlronmenLs
MA8kL1
l-1LLLlCL-L
MarkeL cannlng
MA8kL1
l-1LLLlCL-L
% oclal ulLural LnvlronmenL
% vlews of Lhemselves
% vlews of oLhers
% vlews of organlzaLlons
% vlews of socleLy
% vlews of naLure
% vlews of Lhe unlverse
AppllcaLlon of
lacLors on
LnvlronmenLs
MA8kL1
l-1LLLlCL-L
MarkeL cannlng
MA8kL1
l-1LLLlCL-L
% oclal ulLural LnvlronmenL
ore values
econdary 8ellefs
AppllcaLlon of
lacLors on
LnvlronmenLs
MA8kL1
l-1LLLlCL-L
MarkeL cannlng
MA8kL1
l-1LLLlCL-L
% -aLural LnvlronmenL
onsumpLlon of vlLal resources
ll WaLer MeLals -uclear
MaLerlals
Clobal Warmlng WeaLher
paLLerns
AppllcaLlon of
lacLors on
LnvlronmenLs
MA8kL1
l-1LLLlCL-L
MarkeL cannlng
MA8kL1
l-1LLLlCL-L
MA8kL1l-C
8LLA8P
ueflne Lhe problem and
research ob[ecLlves
uevelop Lhe research plan
ollecL Lhe lnformaLlon
Analyze Lhe lnformaLlon
9resenL Lhe flndlngs
Make Lhe declslon
9rocess
MA8kL1
l-1LLLlCL-L
MA8kL1l-C
8LLA8P
Lep
WhaL ls Lhe problem?
8esearch ob[ecLlves?
MA8kL1
l-1LLLlCL-L
MA8kL1l-C
8LLA8P
Lep 2
8esearch 9lan
uA1A D8L
9rlmary uaLa
econdary uaLa
MA8kL1
l-1LLLlCL-L
MA8kL1l-C
8LLA8P
Lep 2
8esearch 9lan
8LLA8P A998APL
bservaLlonal 8esearch
locus Croup 8esearch
urvey 8esearch
8ehavloral uaLa
LxperlmenLal 8esearch
MA8kL1
l-1LLLlCL-L
MA8kL1l-C
8LLA8P
Lep 2
8esearch 9lan
8LLA8P l-18DML-1
CuesLlonnalres
locus Croups
CuallLaLlve Measures
MA8kL1
l-1LLLlCL-L
MA8kL1l-C
8LLA8P
Lep 2
8esearch 9lan
8LLA8P l-18DML-1
CuallLaLlve Measures
hadowlng
8ehavlour mapplng
onsumer [ourney
amera [ournals
LxLreme user lnLervlews
Dnfocus groups
MA8kL1
l-1LLLlCL-L
MA8kL1l-C
8LLA8P
Lep 2
8esearch 9lan
Analyze Lhe lnformaLlon
Advanced LaLlsLlcal 1echnlques
lrequencles
rossLabs
lacLor Analysls
lusLer Analysls
ulscrlmlnanL Analysls
8egresslon Analysls
MA8kL1
l-1LLLlCL-L
MA8kL1l-C
8LLA8P
Lep 2
8esearch 9lan
9resenL Lhe flndlngs
Make Lhe declslon
MA8kL1
l-1LLLlCL-L
MA8kL1l-C
8LLA8P
Measurlng
MarkeLlng
9roducLlvlLy
ales Analysls
ales varlance analysls
Mlcrosales analysls
MarkeL hare
verall MarkeL hare
erved MarkeL hare
8elaLlve MarkeL hare
MA8kL1
l-1LLLlCL-L
MA8kL1l-C
8LLA8P
Measurlng
MarkeLlng
9roducLlvlLy
MarkeL hare
verall MarkeL hare
erved MarkeL hare
8elaLlve MarkeL hare
ompany's sales expressed as a percenLage of LoLal markeL sales
ls all Lhe buyers who are wllllng and able Lo buy a company's
producL
A markeL share LhaL ls ln comparlson wlLh Lhe markeL leader
MA8kL1
l-1LLLlCL-L
MA8kL1l-C
8LLA8P
Measurlng
MarkeLlng
9roducLlvlLy
MarkeL hare
verall MarkeL hare
verall MarkeL hare usLomer 9eneLraLlon
x
usLomer LoyalLy
x
usLomer elecLlvlLy
x
9rlce elecLlvlLy
MA8kL1
l-1LLLlCL-L
MA8kL1l-C
8LLA8P
Measurlng
MarkeLlng
9roducLlvlLy
usLomer 9eneLraLlon
usLomer LoyalLy
usLomer elecLlvlLy
9rlce elecLlvlLy
of all cusLomers who buy from
Lhe company
9urchases made by cusLomers as a
of LoLal purchases made from all
suppllers
lze of Lhe average cusLomer purchase
from Lhe company expressed as a of
Lhe average cusLomer purchase from an
average company
Average prlce charged by Lhe
company as a percenLage of Lhe
average prlce charged by all
companles
MA8kL1
l-1LLLlCL-L
MA8kL1l-C
8LLA8P
Measurlng
MarkeLlng
9roducLlvlLy
ales Analysls
ales varlance analysls
Mlcrosales analysls
Lxpense Lo ales Analysls
llnanclal Analysls
uu9onL Analysls
MA8kL1
l-1LLLlCL-L
MA8kL1l-C
8LLA8P
Measurlng
MarkeLlng
9roducLlvlLy
9roflLablllLy Analysls
MA8kL1
l-1LLLlCL-L
MA8kL1l-C
8LLA8P
lorecasLlng and
uemand
MeasuremenL
Measures of MarkeL uemand
9oLenLlal MarkeL ls Lhe seL of
consumers who profess a sufflclenL level
of lnLeresL ln a markeL offer 1hey musL
have enough lncome and have access Lo
Lhe producL offer
MA8kL1
l-1LLLlCL-L
MA8kL1l-C
8LLA8P
lorecasLlng and
uemand
MeasuremenL
Measures of MarkeL uemand
Avallable MarkeL ls Lhe seL of
consumers who have lnLeresL lncome
access and quallflcaLlons for Lhe
parLlcular markeL offer
MA8kL1
l-1LLLlCL-L
MA8kL1l-C
8LLA8P
lorecasLlng and
uemand
MeasuremenL
Measures of MarkeL uemand
1argeL MarkeL ls Lhe parL of Lhe
quallfled markeL LhaL Lhe company
decldes Lo pursue
MA8kL1
l-1LLLlCL-L
MA8kL1l-C
8LLA8P
lorecasLlng and
uemand
MeasuremenL
Measures of MarkeL uemand
9eneLraLed MarkeL 1he seL of
consumers who are buylng Lhe
company's producL
MA8kL1
l-1LLLlCL-L
MA8kL1l-C
8LLA8P
lorecasLlng and
uemand
MeasuremenL
MarkeL uemand
ls Lhe LoLal volume LhaL would be
boughL by a deflned consumer group ln
a deflned geographlcal area ln a deflned
Llme perlod ln a deflned markeLlng
envlronmenL under a deflned markeLlng
program
MA8kL1
l-1LLLlCL-L
MA8kL1l-C
8LLA8P
lorecasLlng and
uemand
MeasuremenL
LsLlmaLlng luLure uemand
9asL uaLa Analysls
1lmeerles analysls
LxponenLlal mooLhlng
LaLlsLlcal uemand Analysls
LconomeLrlc Analysls
MA8kL1
l-1LLLlCL-L
MA8kL1l-C
8LLA8P
lorecasLlng and
uemand
MeasuremenL
LsLlmaLlng luLure uemand
urvey of buyer's lnLenLlons
omposlLe of sales force oplnlon
LxperL plnlon
MarkeL 1esL MeLhod
3 lacLor's of 9roducLlon
9orLer's value haln
9orLer's 3 lorces model
Analysls of
apablllLles
W1 1W
Analysls of
apablllLles
9orLer's
value haln
W1 1W
Analysls of
apablllLles
9orLer's
3 lorces
Model
-ew
LnLranLs
uppllers
lndusLry
ompeLlLlon
ubsLlLuLes
usLomers
W1 1W
Analysls of
apablllLles
Alr1el
W1 1W
Strengths
bottl Alttel has more Lhan 63 mllllon cusLomers (!uly
2008) lL ls Lhe largesL cellular provlder ln lndla and also
supplles broadband and Lelephone servlces as well as many
oLher LelecommunlcaLlons servlces Lo boLh domesLlc and
corporaLe cusLomers
Lher sLakeholders ln 8harLl AlrLel lnclude onyLrlcsson
-okla and lng 1el wlLh whom Lhey hold a sLraLeglc
alllance 1hls means LhaL Lhe buslness has access Lo
knowledge and Lechnology from oLher parLs of Lhe
LelecommunlcaLlons world
1he company has covered Lhe enLlre lndlan naLlon wlLh lLs
neLwork 1hls has underplnned lLs large and rlslng cusLomer
base
Analysls of
apablllLles
Alr1el
W1 1W
Jeaknesses
8D Lechnlcal as well as organlzaLlonal capablllLles are
ouLsourced
As opposed Lo compeLlLors (PuLshlson Lssar) key
lnfrasLrucLure (ommunlcaLlon 1owers) are noL owned by
Alr1el
Lack of any resolve Lo develop fuLure markeLs once Lhe
lndlan markeL has become maLure
Analysls of
apablllLles
LnvlronmenLal
Analysls
W1 1W
Analysls of
apablllLles
LnvlronmenLal
Analysls
W1 1W
Analysls of
apablllLles
LnvlronmenLal
8lsk
W1 1W
Analysls of
apablllLles
LnvlronmenLal
Analysls
W1 1W
Analysls of
apablllLles
LnvlronmenLal
Analysls
W1 1W
Analysls of
apablllLles
8aLlos
9erformance
Analysls
Analysls of
apablllLles
MarkeLlng
8aLlos
9erformance
Analysls
Analysls of
apablllLles
9roflL lmpacL of
MarkeL LraLegy
9erformance
Analysls
Analysls of
apablllLles
9roflL lmpacL of
MarkeL LraLegy
9erformance
Analysls
Analysls of
apablllLles
9orLfollo Analysls
Analysls of
apablllLles
9orLfollo Analysls
War Porses uodos
Analysls of
apablllLles
9orLfollo Analysls
8ulld
2 Pold
3 ParvesL
4 ulvesL
Analysls of
apablllLles
9orLfollo Analysls
ALL (ln Lhousands)
98uD1
LA1CS
2007 2008 2009
ony 300 400 410
1oshlba 400 4S0 470
uell 42S S00 490
Acer 600 610 S00
l8M 100 90 7S
nAkD DISk DkIVLS
eagaLe 900 10S0 2000
1oshlba 800 700 900
amsung 810 811 900
1v
ony 2000 2100 1S00
LC 980 1S00 2000
amsung 1000 920 1700
harp 800 900 800
1oshlba 1200 1800 1300
DVD LALkS
1oshlba 700 900 1800
ony 1000 2000 1070
LC 900 1600 1S00
amsug 400 1000 1200
9hllllps 1000 9S0 1100
Model o Consumer Behaior
Buying
Decision process
Problem recognition
nformation search
Evaluation of
alternatives
Purchase decision
Postpurchase
behavior
9er
s9imuIi
Economic
Technological
Political
Cultural
Consumer
PsycoIogy
Motivation
Perception
Learning
Memory
Purc,se Decision
Product choice
Brand choice
Dealer choice
Purchase timing
Purchase amount
M,rke9ing
s9imuIi
Product
Price
Place
Promotion
Consumer
c,r,c9eris9ics
Cultural
Social
Personal
Psychological
lour 1ypes of 8uylng 8ehavlor
omp|ex
8uy|ng
8ehav|or
D|ssonance
keduc|ng 8uy|ng
8ehav|or
Var|ety
Seek|ng
8ehav|or
nab|tua|
8uy|ng
8ehav|or
S|gn|f|cant
d|fferences
between
brands
Iew
d|fferences
between
brands
n|gh
Invo|vement
Low
Invo|vement
MA8kL1
l-1LLLlCL-L
-DML8
8LPAvlD8
ueclslon
PeurlsLlcs and
8lases
8ules of Lhumb or menLal shorLcuLs ln
Lhe declslon process
AvallablllLy PeurlsLlc onsumers base
Lhelr predlcLlons on Lhe qulckness and
ease wlLh whlch a parLlcular example of
an ouLcome comes Lo mlnds
MA8kL1
l-1LLLlCL-L
-DML8
8LPAvlD8
ueclslon
PeurlsLlcs and
8lases
8epresenLaLlveness PeurlsLlc
onsumers base Lhelr predlcLlons on
how represenLaLlve or slmllar Lhe
ouLcome ls Lo oLher examples
Anchorlng and Ad[usLmenL PeurlsLlc
onsumers arrlve aL an lnlLlal [udgmenL
and Lhem make ad[usLmenLs of LhaL flrsL
lmpresslon based on addlLlonal
lnformaLlon
MA8kL1
l-1LLLlCL-L
-DML8
8LPAvlD8
MenLal
AccounLlng
1he manner by whlch consumers code
caLegorlze and evaluaLe flnanclal ouLcomes
of cholces
ltospect 1beoty
coosomets ftome Jeclsloo oltetootlves lo
tetms of qolos ooJ losses occotJloq to o
voloe fooctloo coosomets ote qeoetolly loss
ovetse 1bey teoJ to ovetwelqbt vety low
ptobobllltles ooJ ooJetwelqbt vety blqb
ptobobllltles
MA8kL1
l-1LLLlCL-L
-DML8
8LPAvlD8
MenLal
AccounLlng
1he manner by whlch consumers code
caLegorlze and evaluaLe flnanclal ouLcomes
of cholces
ltospect 1beoty
coosomets ftome Jeclsloo oltetootlves lo
tetms of qolos ooJ losses occotJloq to o
voloe fooctloo coosomets ote qeoetolly loss
ovetse 1bey teoJ to ovetwelqbt vety low
ptobobllltles ooJ ooJetwelqbt vety blqb
ptobobllltles
MA8kL1
l-1LLLlCL-L
-DML8
8LPAvlD8
MenLal
AccounLlng
onsumers Lend Lo segregaLe galns
onsumers Lend Lo lnLegraLe losses
onsumers Lend Lo lnLegraLe smaller losses
wlLh larger galns ancellaLlon 9rlnclple"
onsumers Lend Lo segregaLe small galns
from large losses llverllnlng 9rlnclple"
MA8kL1
l-1LLLlCL-L
-DML8
8LPAvlD8
,opploq tbe
costomets
coosomptloo
5ystem/costomet
Actlvlty
cycle/costomet
5ceootlo
Pow are consumers Lhlnklng?
lnLrospecLlve meLhod
8eLrospecLlve meLhod
9rospecLlve meLhod
9rescrlpLlve meLhod
MA8kL1
l-1LLLlCL-L
M9L1l1l-
1 Aga|nst whom are we compet|ng?
2 Jhat strengths and weaknesses do they
possess?
3 Jhat are the|r ob[ect|ves?
4 Jhat strateg|es are they pursu|ng and how
successfu| are they?
S now are they ||ke|y to behave and |n
part|cu|ar how are they ||ke|y to react to
offens|ve moves?
MA8kL1
l-1LLLlCL-L
M9L1l1l-
Levels of
ompeLlLlon
1 ompet|t|on cons|sts on|y of those compan|es offer|ng a s|m||ar
product or serv|ce to Lhe LargeL markeL uLlllzlng a slmllar Lechnology
and exhlblLlng slmllar degrees of verLlcal lnLegraLlon 1hus -esLle (whlch
makes -escafe) sees Ceneral loods wlLh lLs Maxwell Pouse brand as a
slmllar compeLlLor ln Lhe lnsLanL coffee markeL whlle 9enguln sees lLs
dlrecL compeLlLors ln Lhe chocolaLe snack bar markeL Lo be klLkaL's slx
pack 1wlx and lub
2 ompet|t|on cons|sts of a|| compan|es operat|ng |n the same product
or serv|ce category 9enguln's lndlrecL compeLlLors for example conslsL
of crlsps and lcecreams
3 ompet|t|on cons|sts of a|| compan|es manufactur|ng or supp|y|ng
products that dellver Lhe same servlce 1hus longdlsLance coach
operaLors compeLe noL [usL agalnsL each oLher buL also agalnsL rallways
cars planes and moLorcycles
4 ompet|t|on cons|sts of a|| compan|es compet|ng for the same
spend|ng power An example of Lhls ls Lhe Amerlcan moLorcycle
manufacLurer Parley uavldson whlch does noL necessarlly see lLself as
compeLlng dlrecLly wlLh oLher moLorcycle manufacLurers lnsLead for
many buyers lL ls a cholce beLween a Parley uavldson moLorcycle and a
ma[or consumer durable such as a conservaLory or a boaL
MA8kL1
l-1LLLlCL-L
M9L1l1l-
MA8kL1
l-1LLLlCL-L
M9L1l1l-
lndusLry 9erspecLlve of ompeLlLlon
2 MarkeL 9erspecLlve of ompeLlLlon
MA8kL1
l-1LLLlCL-L
M9L1l1l-
Industry
erspect|ve
of
ompet|t|on
MA8kL1
l-1LLLlCL-L
M9L1l1l-
Industry
erspect|ve
of
ompet|t|on
MA8kL1
l-1LLLlCL-L
M9L1l1l-
Industry
erspect|ve
of
ompet|t|on
onfllcL
2 ompeLlLlon
3 oexlsLence
4 ooperaLlon
3 olluslon
MA8kL1
l-1LLLlCL-L
M9L1l1l-
ompet|tor
kesponses
1he relaxed compeLlLor
2 1he Llger compeLlLor
3 1he selecLlve compeLlLor
4 1he unpredlcLable compeLlLor
MA8kL1
l-1LLLlCL-L
M9L1l1l-
Ident|fy|ng
ompet|tor
Jeaknesses
lloooclol foctots
ash flow problems
Dnder fundlng
Low marglns
PlghcosL operaLlons and/or dlsLrlbuLlon
,otket ooJ petfotmooceteloteJ foctots
low/poor growLh
An overdependence on one markeL
An overdependence on one or a small number of cusLomers
LrengLh ln decllnlng markeL secLors
LlLLle presence ln growlng and hlgh margln markeLs
Low markeL share
ulsLrlbuLlon weaknesses
Weak segmenLaLlon of Lhe markeL
9oor/confused and/or unsusLalnable poslLlonlng
A weak repuLaLlon and/or poorly deflned lmage
MA8kL1
l-1LLLlCL-L
M9L1l1l-
Ident|fy|ng
ompet|tor
Jeaknesses
ltoJoctteloteJ foctots
uLdaLed producLs and a fallure Lo lnnovaLe
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1he fallure Lo focus upon whaL ls lmporLanL
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Managerlal arrogance and a bellef LhaL Lhe organlzaLlon has an
lnallenable rlghL Lo a place ln Lhe markeL
ompeLlLlve arrogance compeLlLlve myopla and compeLlLlve
sclerosls
8ureaucraLlc sLrucLures
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?oung 8ublcam 4s (a rossulLural
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1 1he constroined
(l) Lhe reslgned poor
(ll) Lhe sLruggllng poor
2 1he midd/e mojority
(l) malnsLreamers
(ll) asplrers
(lll) succeeders
3 1he innovotors
(l) LranslLlonals
(ll) reformers
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ource 1be 1lmes 1 lebtooty 1997 p 17
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W obltboooJ JlebotJs
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